DeKALB, Texas — The city is in line for upgrades to its water system thanks to a loan from the state for infrastructure improvements.
The Texas Water Development Board recently approved the city of DeKalb’s application for a more than $7 million loan for the planning, design and construction of a citywide water project. The project would include the installation of approximately 100 new fire hydrants and the relocation of 60% of the water lines in a system that serves about 900 residential and business customers.
Mayor Lowell Walker said the next step is for the City Council to consider and take action on a resolution to accept the loan, which could take place as soon as Tuesday at the next council meeting.
The process to secure the loan took time, Walker said. After several conversations with state legislators — “nothing could get done,” he said — the mayor reached out to Texas’ highest elected official in February.
“I had the opportunity to get with the governor (Greg Abbott) one on one, and his staff was just a godsend that helped us get this,” Walker said Friday to the Gazette.
Walker said along with the support of Abbott’s office, the closing out of a number of bonds helped to make the city’s loan application more attractive.
DeKalb has spent up to $115,000 annually on debt service, he said.
Additionally, DeKalb is receiving financial considerations from the TWDB. Of the $7.17 million loan, the state is forgiving $3.134 million because of the city’s status as a disadvantaged community, and another $840,434 as a green subsidy.
The green subsidy is rooted in how the infrastructure project will help to eliminate water loss.
Some of the pipes in the city’s water system have been in use since DeKalb’s founding in 1836, Walker said. They are made from either metal or concrete asbestos.
Walker said the city keeps “a real close eye” on water quality and has not received any reports of water-related illnesses. Still, the aging pipes have contributed to signifcant water loss — up to 30 million gallons a year.
The upgrades, including the use of PVC pipes, is expected to stanch that loss.
The terms of the loan indicate another $2.04 million will be interest free.
The remaining $1.16 million will have regular loan terms, and Walker plans to issue a bond to cover the costs.
Along with replacing old lines, the project would relocate water lines, many of which are in the middle of the city’s streets.
“When they put some of these lines in, they just put it in the middle of the road, and if they broke, they just dug the road back, filled it up with dirt, because it’s all dirt road,” Walker said about the city’s early days.
The situation is much more complicated now. When a water line breaks, the city has to higher a contractor to dismantle the asphlat, dig down to the broken line, make the repairs and then patch the road. It could cost up to $15,000, Walker said.
With an upgraded water distribution system, the city could save money, Walker said. For instance, customers could see stabilized water rates, which have steadily increased over the years.
The additional fire hydrants would improve fire department response times, perhaps even lowering insurance costs, Walker said.
The overall proce tag of the project will depend on various factors, including an engineering study and materials costs. However, Walker anticipates the work could be completed in 18 months.
DeKalb receives its water from Texarkana Water Utilities.
