Covington council selects Fountain Trust loan to finance $1.5M wastewater plant upgrade

Covington — On Aug. 5, 2024 the Covington City Council voted to accept a $1.5 million loan from Fountain Trust to finance an upgrade to the city’s wastewater treatment plant. Mayor Crain opened competitive bids for financing and recommended Fountain Trust’s offer over a higher-rate proposal from Old National.

Council members reviewed the two proposals presented by Mayor Crain: Old National offered financing for $1.5 million at 4.59% with annual payments over 10 years; Fountain Trust offered $1.5 million at 4.00% for 10 years with semi-annual payments and a $1,000 loan application fee. After Mayor Crain recommended the Fountain Trust bid, Councilmember Smith moved to accept it and Councilmember Martin seconded; the motion passed unanimously, 5-0.

The financing approval formalizes the city’s selected lender for the wastewater upgrade. Around the same time the Board of Works authorized a transfer of $228,600 from Waste Water Operating to Waste Water Depreciation to support wastewater accounting and capital funding. Council and staff also reported project progress: the plant’s tanks were scheduled to be poured later in the week and the laboratory air conditioner was being installed, and city staff said chemical supplies were sufficient through Aug. 31.

The council did not specify further loan-closing dates or the construction contractor in the meeting minutes. The decision to accept Fountain Trust’s terms means the city will proceed with the project under that financing structure; council minutes record the vote and the loan terms described above. The Board of Works and council will handle subsequent implementation steps, invoicing and accounting as the project proceeds.

Next steps noted in council records include standard project work (tank pours and lab AC installation) and administrative follow-up by city staff to complete loan paperwork and project scheduling.