Brady PieperThe City of Denton, Texas, is seeking federal support for upgrades to water infrastructure and wastewater management systems, but that support is now in question.
The Denton City Council approved 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 would allow the city to upgrade, modernize and expand water treatment facilities and initiate large water infrastructure projects.
The request came prior to the EPA’s announcement it was making sweeping changes in funding allocations.
If approved, the substantial request would 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 would be sourced from the issuance of bonds, grants and matching state, local and private investments.
Following the ordinance’s approval, the city would 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 would 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
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 had previously planned to announce awards for the WIFIA loan program in the second and third quarters of 2025 with funding opportunities available for eligible entities in the future. Funding is now uncertain amidst sweeping changes from the administration.
Image by Dimitris Vetsikas from Pixabay
