Newberry council authorizes up to $10 million in utility revenue bonds to fund water, sewer and electric work

The Newberry City Council on June 16 approved a 2026 Series Ordinance authorizing issuance and sale of Combined Public Utility System Revenue Bonds, Series 2026, in an amount not to exceed $10,000,000.

City staff said the proceeds are intended to fund a range of capital improvements to the city's combined public utility system, including water treatment plant repairs and upgrades, electric substation replacements and improvements, sewer and water line repairs and replacements, water tower improvements, meter replacements, warehouse improvements and other general system upgrades, and to pay costs associated with issuing the bonds.

The bonds will be issued pursuant to the city's existing 2015 Master Bond Ordinance and will be secured by revenues generated from the combined utility system on a parity with the existing Series 2015 Bonds and Series 2021A Bonds. The record states that "no new taxes are pledged for repayment of these Bonds." Initial plans noted in the transcript are for a public offering; staff and financial professionals were authorized to finalize interest rates, maturity schedules, redemption provisions, reserve requirements and the sale method.

Councilmember R. Lemont Glasgow moved to approve the ordinance; Councilmember Carlton L. Kinard seconded. Mayor Foster Senn declared the motion carried following a unanimous vote of the councilmembers present.

Next steps recorded in the meeting transcript indicate staff will work with financial advisors to finalize sale terms; the transcript does not include a sale timeline, interest rates, or a closing date.