SUBJECT
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A Resolution of the City Council of the City of Laredo, Texas, requesting financial assistance from the Texas Water Development Board under its Drinking Water State Revolving Fund (DWSRF) - Lead Service Line Replacement (LSLR) Program; authorizing the filing of an application for financial assistance in an amount not to exceed Forty-Four Million Dollars and Zero Cents ($44,000,000.00) for improvements to the City’s waterworks system, including lead service line inventory and replacement; designating certain authorized representatives of the City and approving certain professionals; and making certain findings in connection therewith. Financing through the LSLR program is offered at a ratio of 51% principal forgiveness and 49% loan/bond.
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VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: N/A
Supporting goal(s)/policy(ies): N/A
Summary of alignment:
PREVIOUS COUNCIL ACTION
On June 1, 2026, City Council authorized the Utilities Department to submit an application for funding through the Texas Water Development Board’s (TWDB) Drinking Water State Revolving Fund (DWSRF) Lead Service Line Replacement (LSLR) Program. Funding would be utilized for lead service line identification and replacement. Financing through the LSLR program is offered at a ratio of 51% principal forgiveness and 49% loan/bond.
BACKGROUND
The City of Laredo is undertaking a comprehensive project to identify and replace service lines throughout the City to protect public health and comply with environmental standards. Through initial GIS surveying, the City identified approximately 37,615 unknown service lines that require further assessment for potential replacement under this initiative. The first phase of this project will involve refining preliminary survey data through detailed field assessments and data verification to accurately identify pipe materials of these unknown lines. These efforts are expected to reduce the number of unknown lines, ensuring a more precise and targeted line replacement process. Any surplus of funds from the inventory process will be allocated to begin replacing critical lead service lines in high priority areas while also working towards a citywide replacement. This project aligns with the Texas Water Development Board’s Lead Service Line Replacement program goals which aim to reduce lead exposure by eliminating lead pipes from drinking water systems. The project is listed in the Intended Use Plan (IUP) as being eligible to receive funding, as shown below:
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended that this request be approved.end
Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: N/A
Source of Funds: N/A
Account #: N/A
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Project financing is structured through the TWDB at a ratio of 51 percent principal forgiveness and 49 percent loan obligation. The City’s performance and repayment duties are contingent upon the annual appropriation and availability of budgeted funds. If no funds are appropriated or budgeted in future fiscal years to meet these obligations, any related commitments shall become null and void.