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Charlestown council approves first reading of sewer and water bond package, 7–1
Summary
The Charlestown City Council on Oct. 21 approved first reading of an ordinance authorizing a $2,844,984 combined waterworks and sewer revenue bond package and related State Revolving Fund loans, with the council voting 7–1 to advance the measure and tabling the alternate ordinance indefinitely.
Charlestown — The Charlestown City Council on Oct. 21 voted 7–1 to approve first reading of an ordinance authorizing a revenue bond package to fund upgrades to the city’s combined waterworks and sewer system and to participate in State Revolving Fund (SRF) financing.
John Stumpf, who presented the ordinances to council, said one ordinance authorizes a bond issue in the amount of $2,844,984 while a second draft would have included an additional $216,016 SRF loan and a $500,000 forgivable loan. "If you remove the $216,000 SRF loan, you would forgo the $500,000 principal forgiveness," Stumpf told council, noting the net effect could increase the city’s contribution by about $716,016.
The vote was prompted by new information from state funding partners, Kristen (S12) said, including a warning that excluding the smaller SRF loan could jeopardize the principal‑forgiveness portion of the package. "Last Wednesday the board met ... and during our monthly call with the state funding agencies we learned we would lose out on the $500,000 principal forgiveness if we decided not to include the $216,000 SRF loan," Kristen said.
Council members pressed staff on alternatives, including a possible prepayment of the SRF loan after construction if the bondholder and state consent, and on the timing constraints needed to provide a debt service schedule to state agencies. Bids for the related collection system project arrived higher than earlier estimates: staff reported total bid ranges roughly $11.5 million to $16.8 million, and construction alternates for the Flowing Springs pump station in the $6M–$8.5M range.
After the first‑reading vote passed 7–1, council moved to table the other ordinance (the alternative financing option) indefinitely. The council did not adopt final bond documents; a second reading and subsequent actions remain required before the city can issue bonds or accept SRF financing.
What’s next: Council expects to revisit the financing question at second reading once staff completes the required written schedules and state agencies confirm terms. The council also discussed options to preserve forgiven principal by seeking state permission to prepay SRF debt after construction if that becomes necessary.
