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Decatur council introduces water‑rate and bond ordinances tied to $22M SRF package; hearings set for June 2
Summary
Consultants told the Decatur Common Council that a State Revolving Fund financing package that includes $5.5M in grants, a $2.5M 0% loan and $14M at 2.98% over 35 years underpins a proposed 15% water‑rate increase; the council introduced but tabled the rate and bond ordinances pending a June 2 public hearing and adoption.
The Decatur Common Council on a motion introduced two ordinances on first reading that together would authorize a State Revolving Fund (SRF) financing package and a 15% increase in water rates to cover additional debt service and capital needs.
Consultant Ben Adams of Commonwealth said the city's large waterworks project is being bid and reported three competitive bids received that morning, saying the results were "trending over a million to the good, maybe even two million to the good," and that those savings allowed the team to add mandatory alternates to replace up to another 500 customer services.
Jennifer Wilson, the consultant who prepared the water‑rate study, summarized the financing terms driving the proposed rate change: "They are giving you basically $5.5 million in grant, $2.5 million as a 0% loan, and $14 million of their traditional loan ... at 2.98%" over 35 years. Wilson said the additional debt service tied to the new borrowing increases annual debt service by about $726,921 and that the council's revenue requirement results in a proposed 15% revenue increase, which she estimated would raise a typical in‑city residential bill by about $8 to $10.80 per month.
Kim Blanchard, bond counsel with Barnes & Thornburg, described the bond ordinance as the document that will authorize the SRF package and related exhibits (project description, form of bond, and the SRF financial assistance agreement). Blanchard called the SRF package "one of the best" she has seen, explained a not‑to‑exceed $22 million cap in the ordinance and outlined the schedule: a public hearing on the rate ordinance and bond adoption are planned for the council meeting on June 2; a SRF pre‑closing is scheduled for June 11 and the closing for June 25.
Councilmembers asked about system age, main breaks and the scope of lead service‑line work; Ben Adams said the exact number of lead services is not known and could be as high as 2,000, and that additional investigation funded through the package may be possible. Staff noted construction could begin in earnest in August if the closing and contractors' notices proceed as scheduled.
On procedural votes during the meeting the council voted to introduce both ordinance 2026‑10 (water‑rate ordinance) and ordinance 2026‑11 (bond‑issuance ordinance) on their first readings, then voted to table final action on both until the June 2 council meeting to allow for the required public hearing and final adoption.
Next steps: The council will publish the notice of public hearing at least 10 days before the June 2 meeting; staff and SRF counsel outlined pre‑closing and closing dates if the council adopts the ordinances following the public hearing.
