Texarkana readies ~$20M water and sewer revenue bond alongside FY27 rate hikes

Texarkana readies ~$20M water and sewer revenue bond alongside FY27 rate hikesThe City Council was briefed on the Series 2026 revenue bonds, marking the second tranche of a major debt strategy established in a 2022 rate study, while also approving nearly $873,000 in near-term pipeline contracts.

The proposed Series 2026 Waterworks and Sanitary Sewer System Revenue Bonds are projected to total approximately $20 million, following an initial FY2023 issuance.

Texarkana Water Utilities will implement scheduled rate increases of 5% for water and 4% for sewer, effective October 1, 2026.

The council approved four immediate infrastructure contracts totaling $872,985 for sewer extensions, water looping, and main replacements.

Wholesale water contracts will see CPI-based increases starting January 1, 2027, and the Riverbend fee is under discussion for a potential increase to $5.50 per 1,000 gallons.

The Texarkana City Council is advancing the next phase of its long-term utility capital plan, reviewing a proposed issuance of approximately $20 million in Waterworks and Sanitary Sewer System Revenue Bonds (Series 2026) during its August 10 meeting. The debt issuance is the second tranche of a strategy outlined in a 10-year water and sewer rate structure adopted in September 2022. According to city staff, the rate study assumed two debt issuances of roughly $20 million each to fund needed infrastructure projects. The first issuance was completed in September 2023. While the Series 2026 bonds are scheduled for formal approval on September 14, the first debt service payment—estimated at $1.5 million annually—will not be due until FY2028. To support the ongoing debt service and system maintenance, Texarkana Water Utilities (TWU) is implementing scheduled rate hikes for the upcoming fiscal year. Effective October 1, 2026, water rates will increase by approximately 5%, and sewer rates will rise by 4%. Additional fee adjustments include CPI-based increases for wholesale water contracts taking effect January 1, 2027. The city is also in discussions with participating entities regarding the Riverbend fee, which currently sits at $5.16 per 1,000 gallons and could potentially increase to $5.50 per 1,000 gallons. Alongside the long-term financing plans, the council unanimously approved four near-term utility construction contracts on its consent agenda, totaling $872,985. The approved projects include: - A $535,198 contract for the West 32nd Street eight-inch sewer main replacement, funded through the Texas Infrastructure Fund. - A $157,538 contract for the Spring Lake Park eight-inch sewer replacement, funded through the Texas Capital Improvement Fund. - A $115,071 contract for the Lakeridge Drive six-inch sewer main extension, funded through the Texas Capital Improvement Fund. - A $65,177 contract for the North Street eight-inch water looping project, funded through the Texas Capital Improvement Fund. The final ordinances authorizing the Series 2026 revenue bonds, the adoption of the FY2027 budget, and the updated master fee list are scheduled for a council vote on September 14.