Council approves issuance of up to $1.166 million in bond anticipation notes for water plant projects

City Council approved an ordinance authorizing issuance and sale of notes in a maximum aggregate principal amount of $1,166,100 to cover costs tied to ongoing and planned water system projects, including screw pump equipment, a lift station on State Route 61 and improvements to the water treatment plant.

Finance staff and bond counsel outlined that the borrowing is part of the city’s annual routine to manage debt for multi‑year water and sewer projects. Financial staff said the package rolls over previously authorized items and that last year’s borrowing carried a 4.35% interest rate; the ordinance sets a maximum allowable rate (up to 7%) while staff will solicit bids from multiple banks and accept the lowest returned interest rate.

Mister Craterfield, representing finance, said the notes will be bid to local and regional banks and that the city expects to use the lowest qualified bid to refinance or roll the notes. He described the borrowing as budgeted and part of a cycle that reduces long‑term debt: “We’re just simply rolling over the water treatment plan improvements,” he said, adding that the city paid down larger loans last year and has lowered overall debt in recent years.

Council moved the ordinance to final reading, passed it by roll call and directed staff to proceed with bidding and bond‑counsel steps to complete the transaction. Finance staff said proceeds and the schedule are already incorporated into the city budget for the current year and that the city will execute the notes once bank bids are received and reviewed.

The ordinance lists a series of water and sewer projects and associated outstanding loans; finance staff noted some loans (OWDA) prohibit early payoff. Council asked questions about timing and interest rates; staff said they will return with actual bid results and the final terms once bids are awarded.