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Council introduces water and sewer bond ordinances to replace aging mains and upsize sewer lines
Summary
Councilors introduced bond ordinances to finance water-system upgrades (including replacing 1972 cast‑iron mains) and a larger sewer‑works package to upsize a surcharge-prone 12‑inch gravity sewer to 18‑inch in Merchant Square; both measures will be reviewed in finance committee.
At the July 6 meeting the council introduced two bond ordinances: D-2834-26 for waterworks improvements and D-2835-26 for sewer (wastewater) works. Water Department staff explained projects including replacing 1972 cast‑iron 10‑inch mains with 12‑inch ductile‑iron pipe in the Merchant Square/Carmel Drive corridor and adding a 16‑inch feed west toward Michigan Road. Staff said these issuances are expected to be paid from utility revenues and "will not have any rate effect" under current rate structures.
On the wastewater side staff described a larger package — roughly $25 million in bonds, with about $15 million of new project money and roughly $10 million to retire a prior bond anticipation note. The largest new project is upsizing an undersized 12‑inch gravity sewer line that frequently surcharges; staff proposed replacing it with an 18‑inch main to add capacity for existing flow and future development in Midtown and Merchant Square.
Councilors asked about procurement approach, competitive versus negotiated sales, rating impacts, and the inclusion of cybersecurity and physical security items in the exhibits. Staff said they expect improved utility bond ratings and will present more detailed scope and financing options to the finance committee; committee scheduling was discussed and an August timeframe for second readings was mentioned.
What’s next: Both ordinances were introduced and sent to finance for detailed vetting and bond planning; staff committed to bring asset‑management results and further documentation to the committee.
