Marble Falls restructures contract for new wastewater plant after cost increases
This is a simple rendering of the One Water wastewater treatment plant. This is expected to be the largest project in Marble Falls city history, and the most expensive. Courtesy image city of Marble Falls
The estimated price tag of construction for the One Water wastewater treatment plant in Marble Falls has risen drastically since it was first announced, up to around $121.84 million from the original estimate of $87.84 million. Luckily for local residents and taxpayers, most of the funds are expected to be covered by grants and no-interest loans through the state.
During its regular meeting on Tuesday, Feb. 17, Marble Falls City Council approved a restructuring of the construction manager at risk agreement it had with MGC Contractors for the One Water project, agreeing to spend $57.87 million on the building of the wastewater treatment plant alone, minus the accompanying lift station and piping that would connect the plant to city plumbing. The remaining $30 million from the original $87.84 million estimate was, and still is, needed for material and equipment purchases.
Marble Falls representatives told DailyTrib that they are seeking another $34 million from the Texas Water Development Board in grants and no-interest loans to help cover the remaining costs of building out the lift station and piping. The TWDB is already responsible for funding the vast majority of the project, at about $75 million of the total $87.84 million.
As the current financing stands, the city is contributing about $12.8 million to the project in total and able to cover the no-interest loan payments with its current rate structure, per city documentation.
According to city officials, the drastic cost increases are due to stiff competition for construction contractors with other large projects in Central Texas and national tariffs that were not in place when the One Water project was first planned in 2022.
City Manager Caleb Kraenzel said that the contract changes will likely not impact the current construction timeline, with the One Water facility coming partially online in 2028 and fully online by 2029, which is similar to estimates made when ground was broken in May 2025.
While the city did approve the construction of the One Water plant, the need for it was mandated by the Texas Commission on Environmental Quality in 2019 when the current wastewater treatment plant reached 75 percent capacity for three consecutive months. The current plant is over 70 years old, and will be demolished after the new one is constructed.
“We’re building a wastewater treatment plant that has run 24 hours a day, 365 days a year, for arguably the next 50-100 years,” City Manager Caleb Kraenzel explained. “So construction-wise, it is the most expensive asset any community usually has. We have an existing plant that we’re shutting down, so we’re having to rebuild that capacity, we’re not just expanding.”
The current wastewater plant can process about 1.4 million gallons of wastewater per day. The new plant will process up to 3 million gallons per day and could be easily upgraded to process up to 4.5 million per day according to Kraenzel, allowing it to accommodate the city’s projected growth for decades.