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Commission reviews $10 million water‑main priority list and financing options
Summary
Township staff presented a five‑year water asset management prioritization and financing scenarios for roughly $10 million in water‑main work. Staff and a financial advisor presented bond amortization options; commissioners asked for study sessions to weigh timing, project phasing and funding approaches.
Cross Hill Township staff presented the top priority list from the township’s water asset management plan and financing scenarios for an estimated $10 million in capital work to address high‑priority water‑main replacements.
Staff said the engineer’s estimate for the five most critical project segments — including Meridian Road (from Owen Street to Paulina) and several neighborhood mains — totals roughly $8.5 million in construction and about $10 million including engineering. The township’s financial adviser provided amortization examples for a $10 million borrowing: a 20‑year capital improvement bond at current assumptions would carry an approximate annual payment of $782,000; a 25‑year capital improvement bond showed roughly $702,000 annually; a 30‑year showed about $670,000. For revenue bonds the adviser estimated roughly $805,000 (20‑year), $726,000 (25‑year) and $694,000 (30‑year) annually.
Staff noted the township’s near‑term debt capacity and the effect of bonds that are scheduled to drop off in coming years; based on current debt schedules staff estimated available capacity of roughly $400,000 annually, leaving a funding gap of roughly $270,000 on a conservative $10 million, 20‑ to 25‑year plan. "I had them look at a $10,000,000 loan bond including cost at various different amortization lengths and interest rates and different financing options," Derek said.
Commissioners directed staff and the chairman to meet with the financial adviser, then return with a series of options and a recommended timeline. Commissioners emphasized the need to balance rate impacts with the asset‑management timetable and to show progress to state regulators. Staff and the chair said they will schedule study sessions and aim to present options to the commission and the township board in coming months.
No bond authorization was requested or taken at the meeting; this was an informational presentation and preliminary direction to staff.
