Mobridge council approves $7.35 million revenue bonds to fund wastewater plant upgrades

The Mobridge City Council voted March 11 to approve Resolution 2602 authorizing the pledge of $7,350,000 in revenue bonds to finance upgrades to the city’s wastewater treatment project. Council members said the bonds were locked at an interest rate the meeting recorded as 3.75% and a 30-year term; the resolution passed by roll call.

Council also approved two contractor payments tied to the water/wastewater work. Michael, a water/wastewater staff member who presented the items, requested Pay Request No. 12 to Preload LLC for electrical work at the storage tank (amount listed in the packet/transcript as $4,989.60) and Pay Request No. 8 to Muth Electric for electrical and controls integration at the treatment plant (amount listed as $69,934.50). Both payments were approved by roll call.

The council further adopted Resolution 2603 to establish a surcharge (referenced in the packet/transcript as “2305”) and the process for annual revenue review required by the bond lender. Council discussion on the resolutions was brief; no amendments or conditions were recorded. The motions for the resolutions and the contractor payments were approved in recorded roll-call votes.

The bond authorization and surcharge are intended to secure financing and repayment for the wastewater project; staff noted standard lender reporting and accounting procedures will apply. The council did not identify additional contingencies at the meeting. Next procedural steps are administrative: completion of bond issuance and implementation of the agreed reporting and surcharge schedule.