Angola council advances water and sewer bond ordinances tied to Pokagon Park project

Angola City Council on Feb. 3 approved ordinances setting parameters to borrow for water and sewer capital work tied to the state-funded Pokagon Park extension and other city projects.

Jeff Rau of Baker Tilly told the council the waterworks ordinance (Ordinance 17-71-20-25) "sets a not to exceed number of $12,440,000 for the project" and that recent estimates put total project costs at about $10,218,000. He said the Pokagon portion is currently estimated at about $9,200,000 and is expected to be paid by the state; the city’s portion—tank rehabs including the Calvary 250,000‑gallon tank and a tank at 300 North—totals just north of $1 million.

The ordinance authorizes borrowing up to the stated ceiling and contemplates different financing tools, including a potential State Revolving Fund (SRF) loan that city staff described as offering 0% interest repayable over roughly 20 years for the city’s portion. Rau said the city will open bids and expects final numbers after bid results; a tentative pre-closing with SRF is scheduled for Feb. 25 and an anticipated closing is March 11.

Council members asked whether the state will pay the Pokagon portion. Rau explained that the state often documents assistance as a short-term "forgivable note" or bond‑anticipation note and that the ordinance authorizes the full borrowing amount so the city will be prepared if the state requires a debt instrument. He said the specific allocation and obligations will be set out in a separate financial assistance agreement prepared by state bond counsel and shared with the city before closing.

The mayor said he was "comfortable" with the arrangements. Council members pressed staff on timing and documentation, noting the ordinances and related exhibits arrived after the agenda; staff said the financial assistance agreement and bond documents will be circulated to council prior to the pre-closing and that adoption on the special meeting schedule keeps the project on the March timeline. Staff also noted that publication of the ordinance purport triggers a statutory 20‑day objection period that must run before closing.

The council moved and recorded voice votes in favor of proceeding with the waterworks ordinance and later acted on the related sewage works ordinance (Ordinance 17-72-20-25). Council members and counsel confirmed that adoption of the ordinances does not by itself create a debt until the city signs loan documents and that the mayor’s signature is required to finalize an adopted ordinance. Rau said he would ask SRF for any additional documentation to confirm the reported 0% loan terms and distribute it to council.

Votes at a glance

- Ordinance 17-71-20-25 (waterworks revenue bonds): council approved proceeding with the ordinance (motion and voice vote recorded in favor). The ordinance sets a not-to-exceed borrowing authority of $12,440,000; project estimate ~$10,218,000; Pokagon portion est. $9,200,000 (state-funded); city portion just north of $1,000,000. Mayor’s signature required to finalize adoption.

- Ordinance 17-72-20-25 (sewage works revenue bonds): introduced and acted on by the council; ordinance authorizes up to approximately $16,000,000 (project estimate ~ $11.5 million), with the city portion reported as just over $1 million for station rehabs.

Background and next steps

Bond counsel and SRF/IFA will prepare the financial assistance agreement and related loan documents; Ice Miller (city bond counsel) and the state’s bond counsel will circulate final documents for council review before pre-closing on Feb. 25. Staff said statutory publication requirements will start a 20‑day objection period; closing cannot occur until that period has run. The council scheduled a special meeting next Monday for second and third readings on the ordinances and to remain on the March 11 closing timeline if desired.

(Reporting based on council discussion and presentations at the Angola City Council meeting, Feb. 3, 2025.)