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Troy council weighs financing options after wastewater bids top budget by $650,000
Summary
Bids for Troy's planned wastewater project came in at least $650,000 over the $1.5 million budget; consultants are exploring loans, combined financing and rate adjustments while grant funds must be spent first.
Troy — Bids for the city’s planned wastewater improvement project arrived at least $650,000 above the $1,500,000 budget, city officials said at a Feb. 3 council work meeting.
City Clerk Paula Rice told the council that the implementation-phase bids exceed the budgeted amount and that Chris Hayes of Robert Peccia and Associates is reviewing options to finance the difference. Those options include taking a new loan, combining loans, or raising rates, council members said. Council and staff emphasized that, under the grant terms, the city must expend grant funds before tapping supplemental financing.
The overrun was presented as a prompt for staff to evaluate financing alternatives and the timing of expenditures. Paula Rice said she expects the review to establish whether the city will pursue additional borrowing, restructure project financing, or recommend rate adjustments to cover increased costs.
The council did not take any formal votes or adopt a financing plan at the meeting. Staff will continue work with Robert Peccia and Associates and report options back to the council for future decision-making. The work meeting adjourned at 6:56 p.m.
