Water Works seeks up to $140 million in revenue bonds to fund PFAS compliance and system upgrades

Water Works leadership asked the Columbus City Council to adopt a parameter bond resolution authorizing up to $140,000,000 in water and sewage revenue bonds to finance capital improvements and refund higher‑cost debt.

Jeremy Cummings, speaking for Columbus Water Works, said the largest single item in the capital request is the city’s PFAS/PFOS treatment program (estimated at about $80,000,000) to meet forthcoming regulatory requirements; he said federal and state rule‑making timelines were uncertain but that the utility must plan for compliance. The package also includes sanitary and trunk sewer work (Bull Creek gravity trunk), raw water intake and pump station upgrades, tank rehabilitation and other system improvements.

Cummings said the Water Works also plans targeted refundings of prior bonds (series 2014 and 2016) expected to deliver net present value savings that exceed the city’s 3% policy threshold. Stifel public finance (Brian Husky) described market conditions and said the combined refunding/new money structure fits the utility’s rate‑study projection and would spread new money over a 30‑year schedule while matching refunding amortization to existing schedules where appropriate. Stifel estimated aggregate net present‑value savings of roughly $4,000,000 from the proposed refundings.

Council voted unanimously to adopt the parameter resolution, authorizing the staff and bond team to continue the process; staff said they will return with further resolutions required for financing and closing and noted the transaction will include standard bond‑market processes and additional council approvals before issuance.

Next steps: Staff will return to council in late March for additional required bond resolutions and to finalize structure and timing.