Middleton council authorizes mayor to apply to Idaho Bond Bank to finance wastewater plant upgrade

Middleton’s City Council on Nov. 19 voted to authorize the mayor to submit an application to the Idaho Bond Bank to finance a planned large-scale upgrade at the city’s wastewater treatment plant.

Public Works Director Jason Van Gilder told the council the project requires a “large capital expenditure at the wastewater treatment plant,” and that previous design work and rate studies are complete. He said the Idaho Bond Bank option would let the city borrow using the state’s pooled credit to secure more favorable interest rates than issuing bonds directly to the market.

Cameron Ariel of Clearwater Financial and bond counsel Stephanie Bonnie participated in the discussion. Ariel told the council the city does not currently carry a municipal credit rating and explained the bond bank’s high rating can improve the terms available to the city. Van Gilder said judicial confirmation had already been obtained earlier this year to enable the city to take on debt for the project.

Council members asked whether signing the application would limit the city’s ability to pursue other options to reduce rate impacts. Van Gilder said staff and advisers will continue seeking the best value and opportunities to mitigate impacts for residential and commercial customers.

The council moved, seconded and approved a motion authorizing the mayor to submit the Idaho Bond Bank application on a voice vote.

Next steps: staff and the city’s financial adviser will submit the application and return to council with financing terms and any recommended rate or mitigation options.