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Frostburg council authorizes up to $6 million in bonds to fund sewer separation projects
Summary
The Mayor and City Council approved ordinance 2026-03, clearing the way for low-interest loans and loan forgiveness to complete combined-sewer-overflow (CSO) separation work (phases 10A–10C). The projects carry roughly $7.5 million in total costs and substantial state grant support.
The Frostburg Mayor and City Council voted to authorize up to $6 million in general-obligation installment bonds to finance sewer separation and wastewater infrastructure projects, finalizing ordinance 2026-03 on its second reading.
At a monthly CSO public hearing, city staff described work on phase 10A as essentially complete with the remaining tie-in to 10B beginning soon; phases 10B and 10C have received notice to proceed and contractors are mobilizing. Staff told the council the total project cost across the two projects is about $7,499,000, with roughly $1.7 million in grant funding for 10B and about $600,000 in grant funding for 10C. Loan and loan-forgiveness proceeds are expected to cover the bulk of the remainder, with limited local matches for inspection costs (about $45,000 for 10B and $65,000 for 10C).
"We are 99% done with phase 10A," the public works director said during the CSO hearing, and added that mobilization and material ordering for 10B/10C have begun. The projects will also include restoration and the installation or reinstatement of sidewalks within the city right-of-way, staff said, noting outreach to affected property owners has already taken place.
City staff and bond counsel outlined the financing approach: the ordinance authorizes bonds and loan agreements with the Maryland Water Infrastructure Financing Administration and pledges the city's full faith and credit for repayment. The council was told the loans carry very favorable interest terms (around or under 1%) and that a portion of the bonds may be forgiven after required payments are made in good faith.
Council members voted on the ordinance in its second reading and approved it for final passage. The motion and final tally were taken at the meeting; the record in the transcript shows the ordinance was approved on second reading for final passage.
Next steps include completing the loan closing with the Maryland Department of the Environment and proceeding with on-the-ground work for the 10B and 10C contracts. The council and staff said they will continue outreach to residents in work areas and keep the public informed about traffic and sidewalk impacts.
Provenance: The CSO project descriptions, grant amounts, and technical details were presented during the monthly CSO hearing and the ordinance 2026-03 public hearing and second reading (topic introduction through final passage).
