Council authorizes up to $43 million in water revenue bonds for Signal Hill plant expansion

Summit County Council approved a resolution on July 16 authorizing Mountain Regional Water to issue up to $43,000,000 in water revenue bonds to fund expansion and optimization of the Signal Hill Water Treatment Plant.

District presenters told the council the Signal Hill plant currently produces about "2,600,000 gallons a day" and the expansion would increase capacity to "5,500,000 gallons a day." The district estimated the base project cost at just over $34,000,000 but requested authorization up to $43,000,000 to account for tariffs, contingencies and potential cost overruns. The district said existing contingencies include a $6,380,000 allowance and they proposed adding an additional $2,000,000 contingency to the project budget.

District staff explained financing plans including a WIFIA (Water Infrastructure Finance and Innovation Act) loan. The presenters said the WIFIA loan would fund roughly $34,300,000; WIFIA's terms were selected because the loan has a long amortization (35 years) and deferred payments (no payment required until five years after substantial completion), which reduces short-term rate impacts. District staff said they plan to use impact fees and reserves to cover the approximately 20% of project costs that federal/state loan and grant programs will not cover.

Officials described anticipated customer rate impacts over time: small rate increases of 3%–5% from 2027 through 2033, a potentially larger increase when the first WIFIA payment begins in 2034, and then projected 4%–6% increases thereafter. Staff said those projections assume growth that will spread the cost among additional customers as development continues.

The council opened a public hearing during the meeting. Wendy Aguilar, identified as a Lake Brockport Estates resident, spoke in favor of the project and underscored public-health concerns about local water supply. After public comment and council discussion about the project's renewable-energy features and debt covenants, Council member Meghan McKenna moved to approve the resolution identified in the record as Mountain Regional Water 2025-13, authorizing issuance and sale of water revenue bonds in the amount of $43,000,000 to fund the Signal Hill expansion. The motion was seconded and carried unanimously on a voice vote.

The district said the expansion is intended to serve long-term growth and to address current supply limitations; staff expects the enlarged plant to serve the district for multiple decades.