The City of Denton, Texas, is seeking federal support for upgrades to water infrastructure and wastewater management systems.
The Denton City Council is approving an ordinance to request nearly $771 million from the U.S. Environmental Protection Agency’s (EPA) Water Infrastructure Finance and Innovation Act (WIFIA) for water-related capital improvement projects over the next five years. The federal funding will allow the city to upgrade, modernize and expand water treatment facilities and initiate large water infrastructure projects.
“This is all a part of our growth,” Denton Chief Financial Officer (CFO) Jessica Williams said. “The homes are going to be built and we need to put the infrastructure in the ground.”
The substantial request will fund up to 49% of the projects included in the city’s five-year Capital Improvement Plan (CIP) for water and wastewater infrastructure. The remaining funding will be sourced from the issuance of bonds, grants and matching state, local and private investments.
Following the ordinance’s approval, the city will direct $100,000 from the Water Utilities Operating Fund to cover the WIFIA application fee. Seeking a flexible master agreement with the EPA, Denton’s CFO will oversee the WIFIA application and loan process.
This federal application will support the phased integration of several CIP projects, including capacity upgrades at treatment plants, expanding main water lines and improving distribution piping.
In phase one, Denton would modernize and upgrade the Pecan Creek Water Reclamation, Clear Creek Water Reclamation and Ray Roberts Water Treatment plants to enhance capacity and service. This portion would also expand major collection and distribution main lines.
The second phase would encompass a variety of improvements to lift stations, sewer collection main lines and water distribution line replacement projects.
Denton officials will have until April 15 to submit a Letter of Interest and application to the first round of WIFIA loans. After receiving an invitation to apply, the city’s full application must be submitted by May 10 to qualify.
If Denton’s funding request is approved, city officials anticipate utilizing a built-in 20% contingency on WIFIA funds to flexibly finance water projects without incurring partial award penalties.
The EPA’s WIFIA program, established in 2014, supports a variety of municipalities, public-private partnerships, businesses and state revolving funds around the country that improve water and wastewater infrastructure. WIFIA loans allow eligible entities increased flexibility with how funds can be spent and repaid, including one-time rate interest resets, varying terms, deferred payments, substantial funding availability and long-term stability.
Notably, another Texas municipality, Pflugerville, secured a $156 million WIFIA loan in 2024 to support drinking water infrastructure upgrades and ensure clean, safe drinking water for communities throughout the city.
The EPA anticipates announcing awards for the WIFIA loan program in the second and third quarters of 2025 with funding opportunities available for eligible entities in the future. For additional information on the federal WIFIA program, view the EPA’s one-pager on the program.
Image by Dimitris Vetsikas from Pixabay
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