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Reading council authorizes $1.611 million water-system revenue bonds for MELS project, cancels $589,000 in unused USDA funds
Summary
The Reading City Council approved a USDA loan resolution to issue $1,611,000 in revenue bonds for water-system improvements under the MELS project and authorized the cancellation of $589,000 in previously approved USDA funds that were not needed; both measures passed unanimously.
The Reading City Council on Tuesday approved a resolution authorizing the issuance of revenue bonds totaling $1,611,000 to fund improvements to the city’s water system as part of the MELS project. The bonds will be repaid from monthly water-utility revenues.
The action came after a motion by Councilmember Matz and a second from Councilmember VanCamp; the roll call vote was unanimous (George, Matz, VanCamp, Penney and Mayor Matthews). City Manager/Clerk/Treasurer Kimberly Blythe confirmed the bonds are revenue bonds tied to water-utility receipts.
Council also authorized the city manager to cancel $589,000 of previously approved USDA funds that were not required for the project, citing lower-than-expected construction bids and a revised payer breakdown. That cancellation was approved unanimously.
Why it matters: The bond authorization provides funding to complete planned water-system improvements under the MELS project while the cancellation returns unneeded USDA-committed funds rather than drawing them down. Council discussion did not change the scope of previously approved MELS work.
Details and next steps: The resolution specifies issuance of revenue bonds in the principal amount of $1,611,000. The council did not set an exact bond issuance date in the meeting minutes; implementation details and any closing actions will be managed by city staff.
The measures passed by roll call vote 5-0. The council adjourned at 7:01 p.m.
