Proposed agreement trades rights to possible new water for funding

MOUNT PLEASANT, Texas - An amended funding agreement between the Sulphur River Basin Authority and entities in the Dallas Metroplex seeking water in the basin once again states the funding parties and the authority will receive water from any new supply projects developed by the authority.

The contract, a draft of which was approved by SRBA in August, must now be approved by the cities of Dallas and Irving, the North Texas Municipal Water District, Tarrant Regional Water District and Upper Trinity Water District, all formerly collectively known as the Joint Commission for Program Development. SRBA Executive Director Meg Shelton said she expects that approval by the first of the year.

It includes a clause from the former advanced funding agreement, which ended Aug. 31, 2019. The clause stated that the funding parties, now known as a consulting committee, will receive 80% of the yield from any new water supply projects in the basin developed by the authority and that SRBA will receive 20% at no cost.

The August funding agreement did not include the clause. At that time, Chairman Chris Spencer said it was not included because SRBA did not have a project going forward and that the clause could possibly be included in a future contract.

SRBA was created by the Texas Legislature in 1985 to preserve, protect and develop resources within the basin, but was not given a funding source. The Dallas entities have given $7.9 million over the past several years for water resources planning, which includes private and U.S. Army Corps of Engineers studies to develop water resources in the basin, including the controversial proposed Marvin Nichols Reservoir in the northwestern portion of the basin and the reallocation of Wright Patman Lake. Reallocation would change the purpose of the lake from flood protection to water storage and the level could be raised for additional supplies.

SRBA Attorney Brian Sledge said the key difference in the current draft of the contract is that it is a renewable, "evergreen" agreement that automatically renews for the next year unless one of the parties or SRBA opts out of it and gives notice. Previously, JCPD funds that were not used at the end of the funding cycle went back to the respective entities.

"That's no longer the deal," he said. "SRBA gets $200,000 under the agreement and SRBA is encouraged to seek additional funding sources to make up the difference in between its adopted budget and this $200,000 annual contribution."

The river authority was directed to seek additional funding other than the Dallas entities by House Bill 2180, passed in 2017 by the Texas Legislature. It also included requirements from the Texas Sunset Commission's report on the river authority, including the hiring of an executive director, increased transparency with stakeholders and the media and for all members to undergo board training.

The city of Texarkana, Texas, and Riverbend Water Resources District have both been in talks with SRBA to possibly fund future studies for water development.

Of the steady annual $200,000 in funding, Sledge said, "That's great for SRBA's ability to plan and budget accordingly and to be a good steward of the funds. The key thing here is SRBA doesn't owe anything to the metroplex except communications and cooperation and trying to be a good river authority."

The next meeting is scheduled for 1 p.m., Tuesday, Dec. 17 at the Mount Pleasant Civic Center, 1500 North Jefferson, Mount Pleasant, Texas.

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