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Greene council approves water bonds, passes rate increase to fund East-side water main work
Summary
The Greene City Council approved $1,406,000 in water revenue bonds to support an east-side water main project, detailed project cost and change orders, and adopted an ordinance raising water rates to qualify for SRF loan and CDBG funding.
Mayor Pro-Tem Al Zweck said the Greene City Council approved financing and a short-term rate increase on Monday as it advances a water main replacement project serving the city’s east side.
The council adopted Resolution 2025-31 authorizing issuance of $1,406,000 in Water Revenue Bonds, Series 2025, to secure a loan for the Greene Water Main Improvement Project. The action followed an advertised public hearing that drew no written or oral comments and was closed before the vote.
Why it matters: Officials said the bond and loan structure are needed to leverage a Community Development Block Grant (CDBG) award and to meet State Revolving Fund (SRF) loan requirements that consider rate-setting and debt coverage. Mayor Pro-Tem Al Zweck explained the city must raise rates to demonstrate fiscal capacity for the loan and grant programs.
Project status and budget: Zweck reported the contract work has focused on the Fourth Street portion, with new water main installed along Butler Street, E. Iowa Street and E. Ely Street. The contractor has begun underground boring beneath the railroad; larger on-street work is expected to resume in spring 2026. The project’s total budget is $1,618,953.00, funded by $1,118,953.00 in city funds and $500,000.00 in CDBG funds. To date the city has recorded $239,891.53 in construction costs ($72,016.00 from CDBG and $167,875.53 from city funds), plus $2,000 in grant administration costs charged to the CDBG award.
Change orders and schedule: Council reviewed two change orders: Change Order No. 1, approved Sept. 10, 2025, changed restorations to full-width street replacement rather than patching; Change Order No. 2, approved Oct. 13, 2025, increased costs because dewatering was required to allow boring under the railroad. Officials said there is currently no need for a contract time extension; substantial completion remains Sept. 30, 2026.
Rate change: The council opened and closed a public hearing on an ordinance to amend Chapter 92 (water rates) and then passed Ordinance No. 114 on first reading, waiving the second and third readings. Zweck explained the ordinance raises rates by $5.00 effective January 2026; in July 2026 the minimum bill (up to 2,000 gallons) will increase from $18.57 to $21.91, and volumetric charges above 2,000 gallons will change from $0.54 to $0.64 per 100 gallons. The council said the rates are expected to remain in place through late fall 2026 and will be reassessed if state loan forgiveness is later approved.
What happens next: The financing authorization and ordinance put the city in position to draw on loan proceeds to complete the east-side work; officials said more construction activity will resume when weather allows. The council’s actions also create the rate structure required by the SRF and CDBG programs; members said they will reevaluate rates if loan forgiveness is confirmed.
Votes at a glance: Resolution 2025-31 (water revenue bonds) — Approved by roll call. Ordinance No. 114 (amending Chapter 92, water rates) — Passed first reading and second/third readings waived by roll call. (Roll calls were recorded as unanimous among voting council members.)
Source: Greene City Council meeting minutes, Dec. 8, 2025.
