Florence council approves ordinance authorizing up to $270 million in water and sewer bonds

The Florence City Council approved an ordinance at second reading authorizing issuance of combined waterworks and sewage system capital improvement revenue bonds totaling up to $270,000,000. Council voted by voice to pass the measure after staff summarized projects and answered council questions.

City staff said the bond package will fund a range of water and sewer projects, with about $80,000,000 earmarked for water-quality improvements and approximately $35,000,000 for upfitting the surface-water plant to raise capacity from 10 million to 15 million gallons per day. Staff said the city operates 33 wells and 14 water plants and expects to initially borrow roughly $127,000,000 — “we’ll only borrow what we can reasonably spend in a year or two,” staff said — then return to issue additional bonds later as projects proceed.

Council members pressed staff on timing, scope and benefits. Staff said the water-quality work is expected to take about five years, noting possible variability due to engineering, bidding, weather and system demand. On sewer needs, staff highlighted capacity constraints in parts of the city — particularly the East Side and Second Loop Road corridor — and pointed to infiltration from Jeffers Creek as a cause of added flows that tax the system. Council members thanked staff and engineers for cost reductions that let the city revise some plant expansions (from a previously proposed 10-to-20 million gallon upgrade) to the current plan that mixes surface-water upgrades with other projects.

Council also asked why the city could bond a large amount. Staff explained Florence’s strong municipal credit ratings from Moody’s and Standard & Poor’s, reserves, demonstrated historical debt service and growth projections used by underwriters and bond counsel in the sale process. Bond attorneys and financial advisers were identified as assisting with the multi-month process.

The ordinance amends a prior ordinance referenced in the packet; staff said the authorization is intended to permit multi-year borrowing as needed rather than immediate full issuance of the total authorized amount. Council approved the ordinance by voice vote; the record showed no roll-call tally in the transcript.

Council members and staff said the ordinance follows prior stormwater, wastewater and sewer studies and represents a planned, multiyear program to address long-standing infrastructure and water-quality issues.

The city will proceed with project design, bidding and phased borrowing, and return to council for subsequent bond issuances as projects reach spending phases.