From the Desk of the Mayor | Grant Process Clarification

 Residents of Runaway Bay,

The City has received questions regarding the status of federal grant funding for wastewater infrastructure projects. Because federal infrastructure funding follows a structured, multi-step process, I want to provide clear information so our residents understand exactly where the City stands.

The information below reflects official correspondence from the Environmental Protection Agency (EPA), the U.S. Army Corps of Engineers (USACE), and the City’s engineering partners.

Has Runaway Bay been awarded federal funding?

Yes.

The City of Runaway Bay has been:

• Awarded $1.75 million in EPA STAG (Clean Water State Revolving Fund) Community Project Funding

• Awarded $6.7 million through the USACE Section 5138 Texas Environmental Infrastructure Program

• Approved for an additional $1 million in EPA Community Project Funding (January 2026)

These awards were authorized through federal appropriations and signed into law.

Additionally:

• The EPA has approved the City’s application and scope of work.

• The USACE District Commander approved the Section 5138 Letter Report on November 20, 2025.

• The Project Partnership Agreement (PPA) has been transmitted for signatures and is now in its final execution phase.

These are formal federal milestones.

If the grant is awarded, why hasn’t money been received yet?

Federal infrastructure grants are reimbursement-based, not advance payments.

This means:

• The City does not receive funds upfront.

• Funds are requested only after eligible project costs are incurred and paid.

• Documentation is submitted in phases as engineering and construction progress.

This is standard federal procedure. Not receiving funds at this stage is expected and compliant.

What is the current status?

EPA STAG Program

• Application approved

• Scope of work approved

• Engineering underway

• Eligible pre-award work is reimbursable

USACE Section 5138 Program

• Letter Report approved by District Commander

• Project Partnership Agreement transmitted for signature

• Funding anticipated to be available beginning in the 2nd Quarter of 2026

Once the PPA is fully executed, projects will move into formal implementation phases.

Some federal forms show “not submitted” or “not yet completed.” Is that a problem?

No.

Many federal reporting forms (including reimbursement requests, financial certifications, and EFT documentation) are not required until construction and invoicing phases.

These forms:

• Cannot be submitted before costs exist

• Are triggered by specific federal milestones

• Would be inappropriate to file prematurely

Their absence reflects timing - not noncompliance.

Does “not yet submitted” mean the grant is incomplete or invalid?

No.

Federal infrastructure funding follows clearly defined phases:

1. Congressional Authorization / Award – Completed

2. Agency Review & Compliance – Completed / Ongoing

3. Engineering & Environmental – Ongoing

4. Construction & Reimbursement – Upcoming

Documents required in later phases do not yet exist by design.

Can the City legally draw funds right now?

No.

Federal law prohibits drawing funds before eligible expenses are incurred and approved. Attempting to do so would be improper.

The City is following the required federal sequence.

Has the City misrepresented the status of the funding?

No.

Statements that the City has:

• "Secured federal funding"

• "Been awarded grants"

• "Is moving forward with federally funded wastewater improvements"

are accurate and supported by federal documentation.

Why does the process take time?

Large federal wastewater infrastructure projects require:

• Engineering design

• Environmental review

• Coordination with EPA, USACE, and TCEQ

• Compliance documentation

• Formal execution of partnership agreements

• Reimbursement sequencing

These safeguards protect taxpayers and ensure projects are completed responsibly and correctly.

What happens next?

The City will:

• Finalize execution of the USACE Project Partnership Agreement

• Continue engineering and compliance work under EPA approval

• Begin eligible project implementation

• Submit reimbursement requests as costs are incurred

• Provide updates as milestones are achieved

Final Clarification

The absence of certain forms does not indicate a problem. It indicates the City is following the federally required process. The City of Runaway Bay remains in full compliance and continues to move forward under approved federal funding programs. As always, I believe facts matter. The attached email provides additional confirmation of the City's current funding status.

If you have additional questions, please contact City Hall.

Respectfully,

Mayor Herman White

City of Runaway Bay