Burn Ban in Effect. All outdoor burning is prohibited in Franklin County.
The Franklin County Water District has approved an $18,449,050 construction contract for its dam rehabilitation project, with $16 million in voter-approved bond funds already available and designated solely for the work. As the district prepares for construction, officials are evaluating additional financial options to protect the district’s investments and avoid unnecessarily depleting funds held in reserve.
Although the project will proceed, Reeves said the district is still considering financial options that could help pay for the project's costs without having to withdraw funds needed for normal operations and emergencies.
The district is considering several potential funding sources, including low-interest loans from financial institutions and financing available through the Texas Water Development Board. District officials have also explored grant opportunities, but none are currently available.
Reeves said the district is weighing all of its options as it decides on the best financial route.
Reeves confirmed that selling a portion of the property at Mary King Park is still an option, but stressed that it is only one possibility under consideration and that a final decision has not yet been made.
He said the Water District Board would ultimately decide on the district property, but as general manager, he is responsible for researching options, making recommendations, and then letting the board decide how to proceed.
The discussion is taking place as the district tries to balance the cost of the rehabilitation project with its duty to maintain sufficient financial reserves.
Reeves emphasized that the only tax associated with the water district is the voter-approved bond funding the dam rehabilitation project and that the district has no current intention of pursuing an additional bond, meaning there are no plans for any new or increased taxes beyond those already approved by voters. As work continues, the district will keep evaluating available options.
Reeves also addressed questions about whether the district could still use the original bond funds for the dam rehabilitation project. He said the $16 million bond approved by Franklin County voters remains within the allowable timeframe and that the funds are restricted to the purpose authorized by voters: rehabilitating the dam. The bond proceeds cannot be used for other district expenses or projects.
He also said the Water District Board approves spending from those funds.
The amount approved through the bond is not simply the result of one figure being subtracted from another; according to Reeves, the engineering costs, fees, and other expenses connected with the dam project are also financed by the bond proceeds.
Because of these expenses, the district is still working to determine the best way to cover the remaining project costs while safeguarding the money needed for the district's continued operation.
Reeves said the district has the funding necessary to move forward with the dam rehabilitation project, and construction has been cleared to begin within the next 30 days. As the project proceeds, the district is continuing to evaluate financing options to help preserve funds designated for day-to-day operations and emergency needs, ensuring those reserves remain available when needed.
As Reeves pointed out, this distinction is important; the Water District is not going to wait and see whether the project can go ahead. Instead, it is assessing how to organize its finances so the rehabilitation can proceed without unnecessarily reducing the district's capacity to meet future operational needs.
Reeves stated that financial decisions will continue as the rehabilitation moves forward, with the Water District Board ultimately responsible for choosing the course it considers in the best interest of the district and the community.
