File photo
File photo
The City of Seguin has secured the financing to move forward with a $184 million upgrade for the city's sanitary sewer system, which will consolidate the two wastewater treatment plants in the city into one central plant.
This will close the plan on Walnut Creek near downtown, according to the city.
“This item is the first official action to move forward with an application to the Texas Water Development Board for the wastewater treatment plant project that you have been working on for quite some time," Duane Westerman, of SAMCO Capital Markets, said. "This is the same project. It hasn’t changed from what was presented to you before. It was approximately $184 million. You might have seen in the resolution that the number was higher at $197 million. This is an application to start the process and that application needs to be a number that it will not exceed."
In addition to the $184 million from the last presentation, Westerman said there would be a loan origination fee of 1.75 percent. The project will bring several benefits to the city, especially with savings in the amount of debt the city will have to pay in the financing plan.
“That loan origination fee, if you recall from some of the previous discussions allows us to get this loan which is a subsidized loan from the water development board at much lower interest rates so that 1.75 percent which on a $184 million is in the $3 million range — that savings on that interest over the life of borrowing that money for the wastewater treatment plant could be as much as $100 million so it’s well worth the dollars for that consideration,” Westerman said
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