Newberry council approves first reading of up to $10 million utility bond

Newberry City Council on June 9 approved first reading of an ordinance authorizing the issuance of Combined Public Utility System Revenue Bonds, Series 2026, in an amount not to exceed $10,000,000 to fund capital work across the city's water, sewer and electric systems.

Bond counselor Joe Lucas and Andy Smith of First Tryon presented details of the proposed sale and its purpose. Council materials and the presentation list projects to be funded including water treatment plant repairs and upgrades, electric substation replacements and improvements, sewer and water line repairs and replacements, water tower and meter improvements, warehouse upgrades and other general system improvements. City staff said debt service on the bonds will be paid from combined utility system revenues and will be on parity with the City's Series 2015 and Series 2021A bonds under the existing 2015 Master Bond Ordinance; the city does not plan to pledge new taxes for repayment.

Councilmember R. Lemont Glasgow moved to approve first reading of the bond ordinance; Councilmember David E. DuBose seconded and the motion carried by unanimous vote of the members present. The ordinance authorizes city staff and financial professionals to finalize sale details, including interest rates, maturities, redemption provisions, reserve requirements and whether the bonds will be offered publicly or placed directly. Initial plans are for a public offering.

The presentation and ordinance materials provided the list of project categories to be financed but did not specify exact per-project dollar allocations or the anticipated interest rate and maturity schedule; those details will be set as the sale is finalized. The council will return for second reading and final approval as required by ordinance before the bonds are issued.