As Denton continues to grow, one of our most important responsibilities is making sure our water and wastewater systems are prepared not only for today, but for the decades ahead. These are essential investments – often large, complex, and expensive – but they are investments we can’t afford to postpone.
That is why I’m encouraged by the opportunities provided through the federal Water Infrastructure Finance and Innovation Act, or WIFIA, program.
WIFIA gives communities like Denton access to long-term, low-cost financing for significant water infrastructure projects. Rather than financing the entire cost of major projects through traditional borrowing, WIFIA allows us to diversify our financial strategy and spread costs over time. The goal is straightforward: make the investments Denton needs while being thoughtful about the financial impact on our residents.
Denton is currently pursuing WIFIA financing for several major projects, including expansions of the Pecan Creek Water Reclamation Plant and Ray Roberts Water Treatment Plant, as well as significant wastewater and water infrastructure improvements. Under the proposed structure, WIFIA could finance approximately 49% of eligible project costs, with the remaining costs supported by other appropriate funding sources.
There is an important distinction between borrowing money and borrowing wisely. WIFIA gives Denton another tool to manage the debt associated with infrastructure that will serve generations of residents. The program also allows repayment to begin after projects are completed, helping us better align the cost of these investments with the time when the infrastructure is providing its full benefit.
Of course, WIFIA is not a way to avoid the cost of infrastructure. Water and wastewater systems must ultimately be paid for by the customers who use them, and responsible planning means being honest about that reality. Rates will continue to be influenced by construction costs, inflation, operations and the growing needs of our community. Our responsibility is to find the most responsible financing strategy possible, so those costs do not place unnecessary pressure on residents.
This is ultimately about stewardship. We have an obligation to maintain the infrastructure we inherited, prepare for the Denton our children and grandchildren will know, and do so in a financially responsible manner.
WIFIA is one piece of that larger strategy. It allows Denton to think long-term, manage debt thoughtfully and make critical investments without unnecessarily concentrating the financial burden on today’s customers.
Good infrastructure is easy to overlook when everything is working. But keeping the water flowing, wastewater treated, and our community prepared for the future requires planning today.
That is the kind of stewardship Denton’s future deserves.
