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Sellersburg council approves lease-rental bond resolution to fund major sewer upgrades backed by TIF revenue
Summary
The Sellersburg Town Council voted to approve a resolution authorizing lease-rental revenue bonds — to be repaid with TIF revenue — to finance roughly 10,000 feet of sewer construction and related improvements, a project officials said will cost about $10.5 million.
The Sellersburg Town Council on Aug. 12 approved a resolution authorizing lease-rental revenue bonds to finance a local sewage-works project, with repayment to be secured primarily by tax-increment financing (TIF) revenues. The council approved the resolution by voice vote after discussion of the project scope and financing.
The project described in the resolution includes: about 4,900 linear feet of 24-inch gravity interceptor sewer behind Ivy Tech Community College discharging near the Penn Street pump station; roughly 5,000 feet of force main and another roughly 5,000 feet of additional sewer work near Camp Run Parkway; and a new sewage pump station and related improvements. Town staff said the combined lengths total about 10,000 linear feet and that the overall construction cost is roughly $10.5 million.
Town staff explained the bond structure would use lease-rental revenue bonds and that the town would pledge TIF and special-benefit tax revenues to pay lease rentals due under the project lease. The resolution cites Indiana Code 36-7-14-25.2 as the authority for approving the site lease and project lease forms.
"I think I covered that," said Town staff Jake during the council discussion, summarizing the locations and purpose of the work. Councilmembers asked staff for clarifications about where the lines run and how the project ties into eliminating an existing pumping station and reducing odor issues near the high school.
Councilmembers also discussed funding sources. Town staff said the project would be financed through the bonds and backed by TIF revenues so the work could proceed without raising utility rates. During follow-up comments, staff noted the town would contribute roughly $1 million from ARPA and other recovery funds toward the cost in addition to the bond proceeds.
The resolution sets limits on bond terms in broad strokes: a maximum annual interest rate of 6% and a maximum lease term of 15 years, and it authorizes the council president and clerk-treasurer to execute the site lease and related documents subject to redevelopment commission approval. The council approved the resolution by voice vote.
The resolution gives the redevelopment commission authority to pledge TIF revenues and special-benefit tax revenues for debt service on the project lease, and it permits the council — at its sole discretion — to make other legally available revenues available for rental payments, though those would not be pledged.
Next steps include final bond terms to be determined with the town’s municipal adviser and development of contract documents and construction bidding. Staff said the redevelopment commission has reviewed and supported the financing structure.
The resolution was recorded as passed by voice vote; no individual roll-call tallies were read into the record.
