Staff aims to cover nine drainage projects totaling $1.61 million and eight water and wastewater projects totaling $15.59 million over multiple fiscal years.
This does not guarantee the city will take on debt, but it begins the process of receiving bond revenue if City Council chooses.
The framework
Director of Finance Summer Fleming said the debt for water projects would be funded through water revenue, wastewater projects funded through wastewater revenue and the debt for drainage projects through an ad valorem tax levy.
City Council issued CO bonds in September, totaling around $3.19 million. Total water project costs for fiscal year 2025-26 include an additional $6.89 million in funding, and in fiscal year 2026-27, water projects will need around $4.31 million. The combined total over fiscal years 2023-24 to 2026-27 comes to $15.59 million.
Two new water projects were added in the upcoming fiscal year, including a water line extension for Dietz Elkhorn Road and a GBRA water main extension.
Public Works Director Grant Watanabe said the Dietz Elkhorn project would construct a new 12-inch main along around one mile of roadway. This project is cost-shared between the city and the upcoming Corley development, with the city contributing 75% of the total project cost.
The GBRA extension project will extend the existing GBRA main off Ammann Road up to the new location of the upcoming water tower and the city of Boerne’s future water plant.
Watanabe said since this project benefits both Boerne and Fair Oaks Ranch, an interlocal agreement is in the works to cost-share the project between the two cities.
Council member Jonathan Swarek said if the city decided to cash fund the projects, current residents would be fronting the cost, whereas if the city used debt service, it would be paid over 20 years, meaning residents moving into new developments would help pay for projects.
What’s next?
City Council has until July 20 to decide whether to sell bonds and take on debt for the projects. Council is not obligated to commit to the full cost of the bond projects, and can decide to fund some projects with city funds or to not use CO bonds at all.
Fleming said residents do have the option of petitioning the bonds, and if 5% of registered voters petition, then the bonds are paused until the next election.
