STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: September 13, 2023
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller’s Office
EXECUTIVE: Jack Ireland
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SUBJECT
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Authorize application to the Texas Water Development Board for grant and loan financial assistance for eligible projects through the Flood Infrastructure Fund, in an amount up to $113,190,000, to fund flood risk management projects associated with the Dallas levee system improvements to reduce flood risk - Financing: No cost consideration to the City
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BACKGROUND
The Flood Infrastructure Fund (FIF) was passed by the 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 September 17, 2020, the Texas Water Development Board (TWDB) approved the Prioritization List and Eligible Funding Amounts under the FIF, including two projects for the Modified Dallas Floodway Project, relating to an extension of the floodway and levee system.
The Dallas Floodway Levee System is locally owned and operated, federally regulated by the U.S. Army Corps of Engineers (USACE) and provides flood risk mitigation for an area that encompasses over $14 billion in real and personal property and over 400,000 residents. The levee system currently has two ongoing federal projects that have completed all environmental clearances, received their Record of Decisions, and appropriated funds through the USACE Civil Works Program. Per executed project partnership agreements between the USACE and the City, the City is obligated to cost participate in the design and construction activities for the flood risk management components of the project.
The combined project costs for the Modified Dallas Floodway projects related to the Dallas levee system improvements total approximately $457.7 million. The USACE contribution to the project is approximately $297.4 million, with the City contributing approximately $47.0 million in in-kind contributions. The City is seeking to finance the remaining project costs with financial assistance from TWDB through the FIF. The terms of the financial assistance from TWDB include $23.1 million in FIF grant funding and a $90.1 million long-term, fixed rate FIF loan, offered at zero percent interest.
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 about three months to complete, at which time DWU will receive funding commitment letters from the TWDB. Once funding commitments are received, DWU will seek additional Council approval to accept the grant and loan funding. The future action is anticipated to be presented to Council prior to December 2023.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
City Council will be briefed my memorandum regarding this matter on September 8, 2023.
FISCAL INFORMATION
No cost consideration to the City.