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Council advances $30 million SRF revenue bond for sewer upgrades; $16.05 surcharge adopted
Summary
Council approved ordinances to issue a $30,000,000, 30-year Clean Water Revolving Fund revenue bond at 3.75% for sewer system improvements and adopted a rate ordinance implementing an SRF surcharge estimated at $16.05 as shown in the rate study.
City staff told the Aberdeen City Council that the city plans to finance sewer system improvements with a $30,000,000, 30-year Clean Water Revolving Fund (SRF) revenue bond at 3.75% interest.
Jordan (city clerk) and staff explained the financing terms and said a 110% debt-coverage requirement would result in an SRF surcharge of $16.05 baked into the rate study the council received last fall. Staff recommended approval and noted there were no changes to the ordinance since first reading.
Council moved and approved the ordinance on roll-call votes. Council then considered a companion ordinance to establish the higher sewer surcharge to repay the SRF loan; staff and the city clerk confirmed the $16.05 figure is part of the rate study and recommended adopting the rate ordinance. Council voted to adopt the surcharge ordinance.
The ordinances were presented as standard financing and rate-setting steps: staff recommended approval, and council members voiced support to move these measures forward. No public testimony opposed the measures at the meeting.
Next procedural steps identified by staff include finalization of bond documentation and rate implementation per the approved ordinance.
