Middleton authorizes mayor to apply to Idaho Bond Bank for wastewater project financing

The Middleton City Council on Nov. 19 authorized Mayor to submit an application to the Idaho Bond Bank to help finance a planned capital upgrade at the city wastewater treatment plant.

"We have a need for a large capital expenditure at the wastewater treatment plant," Public Works Director Jason Van Gilder told the council, describing completed rate studies and an engineering design that led staff to recommend bond financing. Van Gilder said the Idaho Bond Bank uses the state's credit to obtain more favorable rates for municipalities.

Council members pressed staff on whether filing the application would limit options to reduce the project—ost impact on residential or commercial customers. "Signing this application does not limit us in finding opportunities to lessen the impact," Van Gilder responded, and Cameron Ariel of Clearwater Financial added that the city's decision to apply would not prevent seeking mitigation strategies during later financing steps. Ariel told the council the city "does not currently carry a Moody rating," a factor the Idaho Bond Bank's strong credit rating can help address.

The council approved the motion to authorize the mayor to enter the Idaho Bond Bank application on a voice vote. The motion was moved and seconded and carried after members said "Aye." The agenda packet and staff presentation noted prior judicial confirmation and bond counsel assistance in preparing the financing approach.

What happens next: staff and the city's financial adviser will complete and submit the application, work with bond counsel on required legal steps, and return to council with financing terms and any recommended adjustments to limit rate impacts. The council did not set final borrowing terms at the Nov. 19 meeting.