Council Discusses Alternate Funding Opportunity for Infrastructure Projects

State Infrastructure Banks (SIB) were authorized in 1995 as a part of the National Highway Designation Act to help accelerate needed mobility improvements through a variety of financial assistance options made to local entities through state transportation departments. The SIB program allows borrowers to access capital funds at or below market interest rates. The Texas Transportation Commission has approved 153 loans through the SIB program in Texas since the program's inception, totaling more than $750 million. The loans have helped leverage more than $8 billion in transportation projects in Texas.

The Texas Department of Transportation reached out to the Town recently about the program and Town staff recognized that several of Addison's upcoming infrastructure projects could be eligible. At the February 13 City Council Meeting, CFO Steven Glickman shared with the Council background on the program, the process to apply, the interest calculation, and projects in the pipeline that would meet the program's criteria. The cost for those projects - Quorum Drive, Montfort Drive, and Keller Springs Road - could total up to $44.6 million. Since Addison has a AAA bond rating, it would receive the best possible interest rate available through the program. This funding mechanism could result in up to $4.4 million in interest savings over 20 years over selling bonds.

The Council will consider action on a formal resolution to apply for funds at a future meeting.

You can watch the Council's SIB discussion here and read the presentation here.