Item 4N - Memo CITY OF
SOUTHLAKE Item 4N
MEMORANDUM
June 16, 2026
To: Alison Ortowski, City Manager
From: Pritam Deshmukh, P.E. Director of Public Works
Subject: Resolution No. 26-024, Requesting financial assistance from the
Texas Water Development Board for a Water Supply and
Infrastructure Grant
Action
Requested: Resolution No. 26-024, Requesting financial assistance from the
Texas Water Development Board for a Water Supply and
Infrastructure Grant.
Background
Information: House Bill 500, passed during the 89th Legislative Session,
appropriated approximately $1.038 billion for water supply and
infrastructure projects through the Texas Water Development
Board (TWDB). The Water Supply and Infrastructure Grant (WSIG)
program represents a one-time limited-term funding opportunity for
eligible Texas communities to receive grant assistance for water
supply and water infrastructure projects. The application period
closes on Thursday, July 30, 2026, and TWDB intends to allocate
funding commitments in Fall 2026. Funds must be committed and
closed prior to August 31, 2027.
TWDB's WSIG program does not require a minimum local funding
contribution. Therefore, staff intends to submit an application
requesting grant funding for the full projected project cost of
$4,125,000. If awarded, TWDB is not obligated to fund the full
amount requested, and the City of Southlake would be responsible
for any remaining project costs not covered by grant funding.
Funding for this project has already been approved in the FY 2026
Capital Improvements Program. To the extent grant funding is
received, previously allocated CIP funding would become available
for reallocation to future capital projects.
The WSIG program provides up to 100 percent grant funding for
eligible water supply and water infrastructure projects that meet the
requirements of the WSIG Implementation Plan. Projects eligible for
this funding are required to address one of the following three
concerns:
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Item 4N
A) Water Loss
B) Regulatory Violations
C) Additional Water Supply
Projects that provide service to existing residents currently not
served by a public water system are considered an additional water
supply project, as it would provide access to public water service to
residents currently served by a private system, and is an eligible
use of these funds.
TWDB has released a simplified project prioritization framework
that allocates points based on the following criteria:
A) Annual Median Household Income
B) Projects deemed ready to proceed for communities with
populations under 150,000
C) Tiebreaker: Preference given to the community that has never
or has the greater amount of time since it last received financial
assistance from TWDB
Initial appropriations are expected to be distributed to communities
by August 31, 2027, and TWDB must commit all available WSIG
funding by that date. As a result, the program prioritizes projects
that can advance quickly toward implementation. Staff has
identified Southlake Park Phase 3 as the proposed project for this
funding opportunity based on program eligibility requirements and
project readiness. The proposed project is intended to loop the
system to enhance water quality on dead end mains, to ensure
adequate fire protection for residents along Crescent Drive, Hillside
Drive, and Southlake Park Drive, and to provide future accessibility
to clean drinking water for residents that request City services. This
area is currently served by a private water system, Southlake Park
Services, however, the City of Southlake holds an overlapping CCN
in this area, which requires the City to provide services if requested.
The City of Southlake has been working with Baird, Hampton &
Brown (BHB) on the first two phases of this project, starting in
2022. Phases 1 and 2 focused on extending fire line infrastructure
within the Southlake Park area to improve fire protection and public
safety. As such, BHB knows the area well, has been coordinating
closely with staff on both community and staff expectations and will
be able to quickly deliver the design for this project. A scoping
meeting with BHB was held May 2026 and staff expects to bring an
engineering services agreement for this project for council approval
in Fall 2026.
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Item 4N
Financial
Considerations: TWDB's WSIG program does not require a minimum local funding
match and may fully fund the project if the full requested amount is
awarded. $4,125,000 of funding for this project was budgeted in the
Utility Fund as part of the City's Capital Improvements Program. To
the extent grant funding is received, previously allocated CIP
funding would reduce City obligations, allowing these funding
sources to be available for reallocation to future capital projects.
Strategic Link: These items link to the City's Strategy Map by delivering on the
focus areas of Infrastructure & Development, in addition to
Partnerships & Volunteerism. It provides this by focusing on
Financial Objective F1: Safeguarding the public trust through a
commitment to thoughtful planning and responsible, conservative
financial management and Business Objective B2: Collaborating
with select partners to implement service solutions.
Citizen Input/
Board Review: Following a recent vote of Southlake Park Services to continue
operations, staff notified the corporation of the City's intent to move
forward with this phase to loop the system, ensure adequate fire
protection, and to provide future accessibility for residents that
request City services.
Legal
Review: The City Attorney has not reviewed the resolution. The resolution is
a template required by the TWDB.
Alternatives: The City Council may approve or deny the resolution.
Staff
Recommendation: Approve Resolution No. 26-024, Requesting financial assistance
from the Texas Water Development Board for a Water Supply and
Infrastructure Grant.
Supporting
Documents: Attachment A - Resolution No. 26-024
Staff
Contact: Pritam Deshmukh, P.E. Director of Public Works
Jeff Ginn, P.E., Deputy City Engineer
Tiffany Matthews, P.E., Civil Engineer
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