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Middleton wins competitive bid for sewer bond; $31.6 million to kick off wastewater plant work
Summary
Clearwater Financial reported that Middleton secured about $31.6 million from a competitive sewer-revenue bond sale through the Idaho Bond Bank Authority, winning a true interest cost of 4.14%, a rate officials said will save the city roughly $4 million in interest compared with AAA benchmarks and allow construction to proceed on the wastewater treatment plant.
Middleton officials said the city will receive roughly $31.6 million from the first tranche of a sewer-revenue bond sale that closed competitively last week, a result city advisers called strong enough to move construction of a new wastewater treatment plant forward.
"Fifteen companies bid; the winning bid was from JP Morgan and the in‑true interest cost is 4.14 percent," said Sheridan Sylvester of Clearwater Financial, which is advising the city on the sale. Sylvester said the awarded rate compares favorably with a 4.46 percent AAA municipal market benchmark and estimated that difference could amount to about $4 million in interest savings over the life of the loan.
Clearing legal steps remain: Sylvester said sellers are finishing required documents and the bond is scheduled to close next week, at which time the city will receive the proceeds and staff can begin contracting construction work. The loan is structured as a 30‑year borrowing, and the city’s first annual debt‑service payment is currently scheduled for September.
Council members and staff credited the city’s credit profile and a competitive sale process for the outcome. "The city's portion of this is very prudent; you set up the financing to be very successful," a Clearwater Financial representative said, thanking city staff for preparation and noting the strong bidder turnout.
City staff said bond proceeds will fund the first portion of a multi‑year wastewater treatment plant project; the overall project cost exceeds the proceeds from this first bond, and a second bond issuance is planned for next year to complete funding.
The council also heard that the pre‑bid walk‑through for plant construction drew more contractors than expected and that staff hope bids will come in at or under the city’s estimates. Officials said they expect to accept construction bids in the coming weeks and to begin work after contracts are executed and financing is closed.
Next steps: legal close on the bond next week, then execution of construction contracts and the start of on‑site work. The council noted the city will use sewer revenues — user fees and connection charges — to pay debt service and that staff will return with implementation details as the procurement and contracting process advances.
