Houston is preparing to seek up to $76 million in state financing to expand and upgrade its North Belt wastewater treatment plant. The proposed loan could lower the city's borrowing costs.
Here's what to know
The financing would come through a State Revolving Fund program administered by the Texas Water Development Board, according to CW39. City finance officials outlined the proposal to council members.
The program could offer a rate as much as 35% below a benchmark, potentially reducing borrowing costs for the improvements. Until the loan is priced, its interest rate will not be final.
The upgrades and expansion would provide updated machinery and greater wastewater treatment capacity. Comparable loans typically have 30-year financing terms.
As part of the financing process, the city also plans to submit a resolution for City Council consideration.
According to data from Rice University's Kinder Institute for Urban Research, Houston was the second fastest-growing city in the nation, behind Dallas-Fort Worth, with its population expanding over 25% from 2010 to 2023. Such rapid population growth increases demand for potable water.
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Among wastewater treatment plant developments and expansions, the city of Houston is also considering seawater desalination to meet growing water demand, ABC13 reported.
Officials anticipate a fall 2027 closing for the wastewater project loan.
Where can I learn more?
Across Texas, communities are weighing how to pay for water infrastructure upgrades.
• Corpus Christi taps treated wastewater for industry, freeing millions of gallons of fresh water.
• Ben Bolt gets $31 million for sewer hookups, with schools first in line.
• In Texas, 79% of voters prioritize water projects following a historic funding vote.
• Houston may spend $5.5 million more on its water meter network as costs climb.
• Conroe faces $210 million in drainage needs as council delays a proposed monthly fee.
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