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Salem Lakes board approves revenue bond for Valmar Yaws sanitary sewer project
Summary
Trustees approved resolution 202607-168 authorizing up to $6,293,000 in revenue bonds (20 years at 2.365%) pledged to sewer utility revenues to fund the Valmar Yaws sanitary sewer project; Ehlers recommended continuing annual rate reviews to ensure debt coverage and the village plans to close on the loan in July 2026.
The Village of Salem Lakes board voted to approve resolution 202607-168 authorizing issuance and sale of up to $6,293,000 in revenue bonds to support the Valmar Yaws sanitary sewer project.
Staff summarized a memo from financial advisor Ehlers explaining the financing: the loan would be a 20-year term at 2.365% and structured as a revenue bond secured by the sewer utility's revenues (not a general obligation bond). Ehlers provided long-range cash-flow projections and recommended the village review user rates annually to ensure the utility continues to meet required debt coverage ratios over the life of the loan. Staff said the village has already authorized a user-rate increase in 2027 and anticipates closing on the loan on 07/22/2026.
A trustee moved to approve the resolution and a second was recorded; the board approved the motion by voice vote with no recorded opposition. Trustees noted this financing approach mirrors prior clean water fund loans the village has used.
No additional amendments or conditions were recorded in the meeting minutes; staff said they would continue to monitor rates and debt service schedules as recommended by Ehlers.
