MW, water district approve $60 million loan for Turkey Peak

Oct. 15—MINERAL WELLS — Plans to build a new lake to meet future water demand took a critical step Tuesday as the Mineral Wells City Council and the district that will build Turkey Peak Reservoir approved the first $60 million in two state loans.

"Every time I'm here I feel like we're making history," bond counsel Rudy Segura said after the boards met in a joint session.

The Texas Water Development Board loans, the first of three phases that will total $200 million, are for Phase I of the project.

Segura said this will improve Ward Mountain Road and pay for land and to move utilities for a new north-south artery replacing the part of Farm-to-Market 4 that the new lake will submerge.

Turkey Peak will be immediately below the Lake Palo Pinto dam. The Palo Pinto County Municipal Water District owns the older lake, which is the water source for Mineral Wells and seven wholesalers supplying Palo Pinto and much of Parker counties.

Separated into taxable and tax-free portions, the 30-year loans have respective interest rates of 4.42% and 3.43%.

They total $25.2 million and $34.8 million, respectively.

Segura said the project was designed in three phases to avoid interest payments on the full $200 million until it is needed.