CORPUS CHRISTI, Texas — State Senator Chuy Hinojosa was one of the lawmakers who received an update on the state's State Water Implementation Fund for Texas (SWIFT) fund.
The fund gives out money to cities in the form of low interest loans for water projects.
The City of Corpus Christi is using $225 million of those dollars to build a desal plant.
However, those who handle the funds told lawmakers that inflation is eating away at the profit. Anca Ion with Texas Trust, said that with the increasing inflation the projects may not hold out.
“If this very high inflation is going to persist, I think the portfolio is not built to keep up with 5% inflation over a long period of time,” Ion said.
Senator Hinojosa doesn't believe that inflation numbers will remain high but it's still cause for concern.
“Our inflation right now is higher than normal; it's close to 5%,” Hinojosa said. “It's causing a lot of issues and problems in terms of trying to make sure that the return on our investments.”
The senator also doesn't believe that the City of Corpus Christi is in danger of not receiving its loan from SWIFT. However, City Manager Peter Zanoni does know that inflation is affecting city business.
“We do have capital projects that are being affected by inflation and supply chain issues," Zanoni said.
Additionally, Zanoni tells 3News that over the past year the city has had 15-to-20 contractors requesting more money for city projects due to rising prices.
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