City of Clyde, Texas
 | PO Box 1155, 222 Oak Street | Clyde, Texas 79510
Chamber of Commerce
City of Clyde
Economic Development

Fort Phantom Water Project

March 12, 2019

City of Clyde to receive $12 million grant/loan from USDA to build Fort Phantom Lake pipeline

   The City of Clyde has been informed it will receive a grant and loan package totaling over $12 million to construct a pipeline from Lake Fort Phantom to Clyde’s water treatment plant.

   Clyde City Administrator Mike Murray announced recently the United States Department of Agriculture will provide the grant/loan package to the City of Clyde.  The USDA will provide grant funding for nearly half of the pipeline.

   Murray said the total grant amount will be around $5 million, while the loan amount will be around $7 million for a total package of approximately $12 million.

   He said the $7 million load will be a 40 year term with an interest rate of 3.125%.

   In 2013, the City of Clyde sold bonds totaling $10.9 million to purchase water rights in Lake Fort Phantom.  Previous droughts proved that Clyde Lake was not sufficient to meet the needs of the City of Clyde and residents of Callahan County.  When Clyde Lake water isn’t available the City of Clyde has to purchase water from Abilene at rates that continue to rise. 

   Murray said currently, the City of Clyde makes an annual payment totaling $715,000 on those bonds for the Fort Phantom water rights.   “Currently, we have $10.9 million borrowed at approximately 5% interest for water that sits in Lake Fort Phantom.   The USDA will also refinance those bonds which have an interest rate of approximately 5% and 15 to 30 year terms.”  The refinanced bonds will be at 3.125% for 40 years.  The grant, new loan, and refinanced bonds will total nearly $22,000,000 but due to the lower interest rates and longer term, debt service will only increase by approximately $50,000 per year to actually deliver the water to Clyde.  The current debt service is $715,000 and the new debt service will be $765,000.

   The city administrator said the City’s engineer, Jacobs & Martin in Abilene, is still negotiating with property owners to purchase right-of-way to construct the pipeline from Lake Fort Phantom to the city’s water treatment plant.  He said of the 22 total property owners from whom the city must purchase right-of-way, there remain about 9 owners still not committed.

   Back in 2013, the City of Clyde purchased senior water rights to Lake Fort Phantom.  Those water rights purchased include 11,834 Acre Feet with which the old WTU electrical plant operated and another 2,500 Acre Feet annually of water in perpetuity.

   One acre foot of water is 325,821 gallons.

   Murray said based upon the city’s current water usage, the 2,500 Acre Feet is three times what the city’s annual usage is thereby leaving excess water to attract industry and allow for future growth.

   Murray said that when all the property owners’ right-of-way is obtained and the engineering to construct the pipeline is completed, the city will receive the $12 million USDA grant/loan package.   Construction on the pipeline could begin as early as the beginning of next year if no delays are encountered.

 

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City of Clyde, Texas    •   PO Box 1155, 222 Oak Street    •  Clyde, Texas 79510
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