1989-03-27 Regular Meeting - Laserfiche WebLink

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• ~~ r ~' The Texas Water Alliance STATE PARTICIPATION Implementing the 1985 Water Plan In 1985, as part of a comprehensive water package, Texas voters approved over $1 billion in bonds and bond guarantees to fund water supply, water quality, and flood control projects. Unfortunately, a key component of this plan has not yet been implemented by the Legislature. The 1985 plan earmarked $400 million in bonds for actual state participation in major regional projects. Through this program, the Water Development Board can buy capacity in reservoirs, treatment plants, transmission lines, and flood control projects, encourage optimum regional sizing of water facilities, then sell the capacity as demand develops. By helping overcome the hurdle of front-end financing, the state can help prevent the proliferation of small, inefficient projects in some areas where they may be inappropriate. As a part of the state budget process, the 71st Legisla- ture is considering whether to begin implementation of this program. The Legislature must authorize the Water Develop- ment Board to issue the bonds and budget funds to pay debt service until the state's interest in a project is sold. The use of state participation bonds represents an investment by the state in major water-related capital facilities, supplementing local resources when projects are larger than a single city or district. This state investment in water facilities was prevalent in the 1960's and 1970's, but has been nonexistent in recent years. This trend should be reversed. The 1985 water package was approved by seventy ercent of Texas voters. The Legislature should consider that vote, authorize the issuance of $50 million in state participation bonds in each fiscal year of the 1990-91 biennium, and provide funds to pay debt service on this investment.