TRWD authorizes $350 million bond sale for pipeline renewals and operations facility

TRWD authorizes $350 million bond sale for pipeline renewals and operations facilityThe Texas wholesale water provider is moving forward with a significant bond issuance to finance aging infrastructure replacements, a new operations compound, and wetland projects while refunding existing debt.

The Board authorized the issuance of Series 2026 bonds in an amount not-to-exceed $350 million.

Proceeds will fund the Cedar Creek and Rolling Hills pipeline replacements, the Marty Leonard Wetlands, and a new operations compound.

A $61.2 million construction authorization was separately approved for the new Fort Worth Operations Compound.

The bond sale includes approximately $100 million in refunding, projected to save the District nearly $3 million.

Bids for the bonds are scheduled for March 31, 2026, with proceeds expected in April.

The Tarrant Regional Water District (TRWD) Board of Directors has authorized the issuance of Water Revenue Refunding and Improvement Bonds, Series 2026, with a total amount not-to-exceed $350 million. The financing is designed to fund a suite of major capital improvements while refinancing existing debt for interest savings. According to the bond resolution and staff reports, the new capital will support the District’s ongoing efforts to preserve aging infrastructure and increase capacity. Specific projects earmarked for funding include the Cedar Creek pipeline replacement project, the Rolling Hills pipeline replacement project, and the design of the Marty Leonard Wetlands. Additionally, the bonds will fund the construction of a new Operations Facility. Sandy Newby, the District's Chief Financial Officer, outlined the structure of the issuance to the Board. "That $250 million will be new proceeds. Approximately $100 million is going to be a refunding," Newby said. She noted that the refunding portion of the transaction is projected to generate approximately $3 million in savings. The District plans to take bids on the bond sale on March 31, 2026, with closing and delivery of funds anticipated in April. Coinciding with the bond authorization, the Board approved a specific contract regarding the new operations center. A contract was awarded to SEDALCO, Inc., a Texas-based general contractor with a portfolio spanning municipal, commercial, and educational sectors, for the construction of the TRWD Fort Worth Operations Compound. Mick Maguire, Chief Administrative Officer, requested a total authorization of $61,208,465 for the project, which includes a $58.3 million contract and a 5% owner’s contingency. Maguire explained that the project is necessary to relocate operations currently situated across the river that will be impacted by the Central City flood control project. The new compound will include seven buildings and support structures, housing administrative offices, law enforcement, and a hardened communications center for emergency response. In related infrastructure news, the Board approved a $1.4 million contract amendment with Freese and Nichols, Inc. for the Mary’s Creek Indirect Water Reclamation Project. Jason Gehrig, Infrastructure Engineering Director, explained that the amendment covers the design of a one-mile parallel pipeline to increase flow capacity to the Eagle Mountain Balancing Reservoir. This infrastructure is critical for meeting demand in the northwest area of the service territory, which Gehrig noted is seeing "tremendous growth." The design changes will allow the District to backfeed water to the City of Fort Worth's Westside Water Treatment Plant, improving operational redundancy. The urgency of maintaining the District's transmission system was highlighted during a system operations update. Rachel Ickert, Chief Engineering Officer, reported that a break occurred on the Cedar Creek pipeline the morning prior to the meeting. While crews were able to isolate the break and maintain water delivery through contingency operations, the event underscored the necessity of the pipeline replacement and maintenance projects funded by the new bond issuance.