BGMU outlines interim financing plan for water and sewer projects; commission approves authorization

Representatives of Bowling Green Municipal Utilities (BGMU) told the Board of Commissioners on Nov. 4 that the utility needs interim financing to start design and early construction on three water and wastewater projects.

Mark Iverson of BGMU said parts of the water-treatment infrastructure date to 1928 and that construction costs have risen significantly since the pandemic. He described a construction-manager-at-risk approach to better align design and construction and said interim bond anticipation notes will let BGMU proceed through design and early construction before final long-term financing is packaged.

Iverson said one recent upgrade added roughly 50% capacity at the water plant through a roughly $50 million project and that replacing the historic infrastructure from scratch today would be substantially more expensive. The interim financing is intended to cover design and early construction; final borrowing and the total financing package will return to the commission later.

Commissioners asked for and received context about project sequencing, cost uncertainty and timing. The commission recorded a roll-call vote advancing the authorization.

Quote: "This is just to kind of get us started on those projects, and we will come back a couple years later with a final financing package," Mark Iverson said.

What happens next: BGMU will pursue interim bond anticipation notes to fund immediate design work and early construction; the utility will return with detailed cost estimates and a final financing plan for commission approval.