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Financial adviser outlines options for Moheede Dam repairs; design work would require about $532,000
Summary
A financial adviser told commissioners the Moheede Dam needs nearly $4 million in improvements and outlined funding options including Rural Development (unlikely), state revolving funds (not sized for project) and an open‑market general‑obligation bond; design work is estimated at about $532,000 and would be needed before construction.
A financial adviser briefed Blackford County commissioners on financing options for the Moheede Dam improvement project, saying engineers estimated the repair cost at just under $4 million and that the county must decide how to fund design work to keep construction on schedule.
Sean Pinebier of Pinebier Financial told the board that the county faces three basic paths: seek a subsidized loan from a federal or state program, pursue a Rural Development program (unlikely because the dam is rated moderate risk), or issue an open‑market general obligation bond. He recommended planning early to have design work complete before next summer’s construction season.
Pinebier said the preliminary design phase would likely cost about $532,000 and take about eight months. He suggested the county could either borrow in anticipation of a bond (a bond anticipation note) or consider temporarily loaning existing county funds to start design and be reimbursed when long‑term financing is issued.
Key details from the presentation: - Estimated capital need: just under $4,000,000 (engineers’ estimate). - Design-phase estimate: approximately $532,000 for about eight months of work. - Rural Development: likely not eligible unless the dam is rated high‑risk; the state currently rates the dam as moderate risk, so Rural Development funding is “about 90%” unlikely, Pinebier said. - State Revolving Fund (SRF): has subsidized rates but not currently sized for projects of this magnitude, Pinebier said. - Open‑market general obligation bond: the likely fallback if federal/state programs are unavailable; would require a term sheet, market outreach, and potential issuance costs and rating fees.
Pinebier recommended commissioners consider setting up a construction fund or moving funds in phases to avoid locking up all money at once. He also said that if the county used its own cash for early design, the county would forgo the return it could earn in the Local Government Investment Pool.
No formal funding decision or vote was taken at the meeting. Pinebier asked the board to consider the options and suggested adding the item to a future agenda so the county could finalize timing for financing and design work.
