Mercedes eyes $21 million water grant; sewer contract, zoning, and backup power rules on the table
Mercedes officials have a packed agenda this week, with the City Commission scheduled to consider applying for up to $21 million in state water infrastructure funding and voting on ordinances covering residential backup power systems and sludge transporter regulations.
All three recent City Commission meetings — held July 21, July 29, and July 30 — were agenda-only items; minutes have not yet been published. The details below reflect what was posted on the agendas, not what was ultimately decided.
$21 million water infrastructure grant application
On July 29, the City Commission was set to discuss and possibly authorize an application to the Texas Water Development Board for financial assistance through the House Bill 500 Water Systems Infrastructure Grant (WSIG), not to exceed $21,000,000.
The agenda listed the funds as supporting the City's Water System Improvement Project, which would include a new supply well, a reverse osmosis (RO) water treatment plant, a storage tank, and piping improvements.
The same meeting included an executive session for deliberation on HB500 legal matters, real property, personnel, and economic development.
Sewer project contractor and zoning
The July 21 agenda included consideration of awarding a contractor for Sanitary Sewer Improvement Project Bid # 2026-001. No contractor name or dollar amount was listed on the agenda.
Also on that agenda:
- Second and Final Reading of Ordinance 2026-16 to rezone Lot 4 & Lot 5 Block 104 Campacuas Addn 2 Irrg Trs.
- First Reading of Ordinance 2026-17 adding Section 3.12 "Residential Backup Power Systems" to building regulations.
- Interlocal Agreement with Mercedes ISD for School Resource Officers for 2026-2026.
- Contract extension with Waste Connections for Solid Waste until September 30, 2026.
Joint economic development meeting
On July 30, the City Commission and the Development Corporation of Mercedes were scheduled to meet jointly. The agenda listed discussion and action items regarding HSA and Austin Film Crew, plus discussion regarding signage for Expressway.
The meeting also included an executive session covering economic development negotiations involving more than 40 projects, including Project ZIWA and Project Travel Center, as well as pending legal issues and delinquent loans.
Coming up: August 4 meeting
The City Commission meets again on August 4 with several ordinance votes and contract considerations on the agenda:
- Ordinance 2026-17 adding Section 3.12 "Residential Backup Power Systems" to Building Regulations — a second opportunity to act on the item first read on July 21.
- Ordinance 2026-19 updating regulations and penalties for "Sludge transporters."
- Ordinance 2026-18 to release a five-foot portion of a Public Utility Easement in Summer Breeze Subdivision.
- Contract consideration for Galindo Auctions for Auctioneering Services.
- Agreement with CB3 for Non-Hazardous Liquid Sludge Disposal.
The August 4 agenda also references a request to host Siggno Fest at Dome Park.
Because minutes from the July meetings have not yet been published, residents should check the City of Mercedes website for official outcomes before relying on any of the items listed above. Agendas describe what a body plans to discuss; they do not confirm what was decided.