Denton is actively seeking financing through the federal Water Infrastructure Finance and Innovation Act, known as WIFIA, to support major upgrades to its water and wastewater systems. The city is currently applying for funds to expand the Pecan Creek Water Reclamation Plant and the Ray Roberts Water Treatment Plant, along with other significant infrastructure improvements.
Under the proposed financial structure, WIFIA would cover approximately 49% of the eligible project costs. The remaining expenses would be supported by other funding sources. This approach allows the city to diversify its borrowing strategy rather than relying solely on traditional loans for the full cost of these projects.
Officials stated that the program enables repayment to begin only after the projects are completed. This timing aligns the financial obligations with the period when the infrastructure is providing its full benefit to the community. The goal is to manage debt associated with long-term assets in a way that spreads costs over time.
City leaders emphasized that while WIFIA provides a tool for responsible planning, it does not eliminate the need for customers to pay for water and wastewater services. Rates will continue to be affected by construction costs, inflation, and operational needs. The administration stated its responsibility is to find a financing strategy that avoids placing unnecessary pressure on residents while maintaining essential services.
