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Elkton council approves up to $3.33 million bond to finish water system upgrades
Summary
The Town of Elkton authorized a general obligation revenue bond of up to $3,326,827 to fund Phase III of water supply and distribution improvements; council approved the measure 6–0 after a public hearing where residents raised concerns about the town's overall debt burden.
The Town of Elkton on Jan. 20 approved a resolution authorizing the issuance of a general obligation revenue bond not to exceed $3,326,827 to acquire, construct, rehabilitate and equip the town's water system, including supply and distribution upgrades. The council voted 6–0 to adopt the measure.
Town Manager Greg Lunsford said the loan would fund Phase III of a multi-phase water project, with Phase II scheduled to begin next month and Phase III focused on completing system connectors. He told the council the loan rate structure would be 1.5 percentage points below market rate plus an additional 1.5 percentage points to cover administrative and management services; repayment would begin six months after project completion and would not extend beyond 20 years. Public Works Director Gaither Hurt confirmed the sequencing and timing for the phases. Town Treasurer Donna Curry provided a brief overview of the town's current debts and financial obligations.
During the public hearing, resident Wayne Printz said he is concerned about the town's overall borrowing levels, which he estimated at roughly $23–24 million, and questioned the cumulative impact of recent land sales, annexations and development on residents' costs. Printz also asked about the status of grant funding previously secured for the wastewater treatment plant. The public hearing record did not include an on-the-spot response to his estimate.
Mayor Joshua J. Gooden called for the vote after Council discussion. Vice-Mayor Rick Workman moved to adopt the resolution and Council Member Virginia Fulginiti seconded; the roll-call vote was recorded as J. Hensley, V. Fulginiti, R. Workman, R. Michael, A. Napotnik and L. Heidel voting yea, with no nays.
The resolution authorizes staff to proceed with the loan application and related actions; council materials note the town previously closed on two VDH loans with 3% interest whose repayments begin six months after the completion of their respective projects. Council did not set a project completion date at the meeting.
Next steps: staff will proceed with the loan application and return any required authorizations or documents to council for ratification as needed. The town will report on project progress and financing in future committee and council meetings.
