· Peak
TWDB approves $60 million loan for planning and design of the Hollywood Road expansion
The Texas Water Development Board considered and approved $60 million from the Clean Water State Revolving Fund for planning and design to expand the Hollywood Road plant from 12 MGD to 22 MGD. The City pledged waterworks and sewer system revenues. The planned schedule runs to design completion in June 2028 and construction completion on December 31, 2031.[1][2][3]
What the sources say
- ⚠ Sources differ
The planned capacity of the new or expanded Hollywood Road facility is stated differently over time.
- ✓ Verified
On August 6, 2026 the Texas Water Development Board approved $60,000,000 in Clean Water State Revolving Fund financing (Project No. 74008), through the proposed purchase of City of Amarillo Waterworks and Sewer System Revenue Bonds, Series 2026, for planning and design of expanding the Hollywood Road plant from 12 MGD to 22 MGD; the City pledged waterworks and sewer system revenues (first lien).[1][2][3]
- Loan
- $60,000,000
- From mgd
- 12
- To mgd
- 22
- ✓ Verified
TWDB's project budget for the $60 million allocates $38,697,340 to design, $13,709,800 to planning, $698,624 to special services, $5,882,861 to fiscal services (including a $4,645,919 bond reserve fund and a $1,031,941 loan origination fee) and $1,011,375 to contingency.[1]
- Total
- $60,000,000
- Design
- $38,697,340
- Planning
- $13,709,800
- Special services
- $698,624
- Fiscal services
- $5,882,861
- Contingency
- $1,011,375
- ✓ Verified
Projection (TWDB illustrative schedule, subject to change at closing): 30-year maturity to March 1, 2056 at a net interest rate of about 2.87%, total interest of $30,385,126, and estimated savings of $18,125,768 over the life of the financing.[1]
- Net interest rate
- 2.869%
- Total interest
- $30,385,126
- Savings
- $18,125,768
- Final maturity
- 2056-03-01
- ✓ Verified
TWDB's financial review states that the water and sewer system's FY2025 debt service coverage ratio was 0.93x against a 1.0x requirement; it projected rate increases totaling $2.66 would be needed by 2028, and noted the City implemented a $4.39 rate increase in October 2025 that staff expect to mitigate the need for further increases to cover current debt.[1]
- Debt service coverage fy2025
- 0.93
- Required coverage
- 1
- Oct2025 rate increase
- $4
- ✓ Verified
TWDB's funding request states that Hollywood Road is operating above 9 MGD, exceeding 75% of its 12 MGD capacity, and that TCEQ requires utilities to begin planning for expansion once flows reach 75% of permitted capacity.[1]
- Pending
The City has applied for a second $60 million TWDB loan for planning and design at the River Road plant; no decision had been reported as of August 7, 2026.[3]
- ✓ Verified
Donny Hooper, Assistant City Manager: Assistant City Manager Donny Hooper said: "We're going to look at every cost-saving measure that we can absolutely find."[3]