PILLAR: Fiscally Sound
AGENDA DATE: November 12, 2025
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller’s Office
PRIORITY: Infrastructure
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SUBJECT
Title
Authorize application to the Texas Water Development Board for grant and loan financial assistance through the Flood Infrastructure Fund, in an amount up to $10,000,000, to fund flood management evaluations and preliminary engineering associated with storm drainage improvements in the Mill Creek, Peaks Branch, and East Peaks Branch watersheds - Financing: No cost consideration to the City
*In alignment with Capital Improvement Program.
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BACKGROUND
The Flood Infrastructure Fund for Texas (FIF) was passed by the 86th Texas Legislature and approved by Texas voters in 2019 through a constitutional amendment. The FIF program provides financial assistance in the form of loans and grants for flood control, flood mitigation, and drainage projects. On April 10, 2025, the Texas Water Development Board (TWDB) approved the State Fiscal Year 2024-2025 FIF program project prioritization lists and eligible funding amounts for Flood Management Evaluations and Flood Mitigation Projects. The prioritized project list includes the Mill Creek Drainage Relief System - Upper - Middle Improvements for flood management evaluations and preliminary engineering associated with storm drainage improvements in the Mill Creek, Peaks Branch, and East Peaks Branch watersheds.
On September 24, 2025, the TWDB invited the City of Dallas to submit an application for funding through the FIF Program for the Mill Creek Drainage Relief System - Upper - Middle Improvements according to the criteria outlined in the State Fiscal Year 2024-2025 FIF Intended Use Plan. The eligible project cost is $10.0 million to include flood management evaluations and preliminary engineering up to thirty percent (30%) design. Fifty percent (50%) of the project cost or $5.0 million is eligible as a grant and the remaining $5.0 million is offered through zero percent (0%) financing. Completed applications must be sent to the TWDB by Friday, December 5, 2025.
The Mill Creek/Peaks Branch/East Peaks Branch Drainage Relief Project is a multi-phase, long-term investment by the City of Dallas to reduce recurring flooding and improve stormwater infrastructure in some of the city's most flood-prone urban neighborhoods. The first phase is under construction and includes a five-mile drainage tunnel. When completed, it will provide significant flood relief south of the tunnel and to areas immediately along the alignment including Baylor Hospital, south of Buckner Park, Fair Park, and State-Thomas near Woodall Rodgers. On October 8, 2025, the City Council authorized an engineering services contract for the next phase of improvements with Halff Associates, Inc. Engineering evaluations and preliminary designs will be prepared to improve upstream collection and conveyance systems that drain to the tunnel to provide 100-year flood protection. These undersized systems were constructed in the first half of the 1900’s and quickly reach their capacity when a storm event occurs. The proposed upstream improvements will further reduce flooding and maximize the tunnel’s effectiveness.
Preliminary engineering services are expected to take two years to complete. Services will include the evaluation of master planned improvements, hydrologic and hydraulic modeling, analysis of construction methods and alignments, survey and field investigations, coordination and outreach, and preparation of preliminary designs and construction cost estimates up to a fifteen percent (15%) design level. Future contract amendments will be needed to authorize and complete the remaining engineering services for the project. The City is seeking to finance eligible preliminary engineering costs up to thirty percent (30%) design with financial assistance from TWDB through the FIF. The terms of the financial assistance from TWDB include $5.0 million in FIF grant funding and a $5.0 million long-term, fixed rate FIF loan, offered at zero percent (0%) interest.
Participation in the FIF will help facilitate the design and provide lower overall costs for financing the project. TWDB is a dedicated source of funding and frees up funding capacity to use on other infrastructure improvements. In addition, acceptance of these funds will position the City of Dallas to progress the Mill Creek Drainage Relief System - Upper - Middle Improvements to a Flood Mitigation Project through the regional and state flood planning process. As a Flood Mitigation Project, engineering costs beyond the thirty percent (30%) design level and construction costs would be eligible for consideration and inclusion in a future State Fiscal Year FIF program.
This action is the first of two Council actions required by the TWDB to participate in the FIF financial assistance program, which authorizes the submission of a financial assistance application for the FIF program. The application process is expected to take several months to complete, at which time the City of Dallas will receive funding commitment letters from the TWDB. Once funding commitments are received, Dallas Water Utilities and the City Controller’s Office will seek additional Council approval to accept the grant and loan funding. The future action is anticipated to be presented to Council within the next six to nine months.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Committee on Finance was briefed on the “Existing Debt and FY26 Planned Debt” on October 21, 2025.
The Committee on Finance City Council was briefed by memorandum regarding this matter on November 47, 2025. <https://dallascityhall.com/government/citymanager/Documents/Council%20Materials/33.%2025-3056A.pdf>
FISCAL INFORMATION
No cost consideration to the City.