Decatur council hears water project bids and rate study; first readings of rate and bond ordinances tabled to June 2

The City of Decatur Common Council on May 19 heard presentations on a large water‑system improvement project, financing options and a rate study that recommends a 15% rate increase to cover annual debt service.

Ben Adams, representing Commonwealth, told the council that bids for the large water project “came in at a great rate” and that the final contract would be bid on May 21, 2026. Adams said savings identified in the bids make it possible to add about 500 service replacements to the project—roughly double the number discussed six to seven months earlier.

Jennifer Wilson, a consultant with Crowe, summarized Crowe’s rate analysis and the proposed financing package. She said the City is expected to receive $5.5 million in a non‑repayable grant, $2.5 million in 0% assistance, and about $14 million in traditional loan financing at 2.98% for 35 years. According to Crowe’s presentation, “a 15% rate increase is needed to cover the annual debt service.” The study estimated that increase would translate to about $8 to $10.80 for in‑city residential customers and about $9.90 to $13.00 for customers outside the city.

City bond counsel Kimberly Blanchet (Barnes & Thornburg) joined by Zoom to explain the Utility Bond Ordinance and the legal steps involved in issuing debt for the project. Councilmembers were told a public hearing on the rate ordinance will be held June 2, 2026; a separate meeting concerning the agreement with the City is scheduled for June 11 at 10:00 a.m.

Councilmember Jenny Bowers‑Shultz moved to place Ordinance 2026‑10 (which would amend rates and charges for the Decatur water system) on first reading by short title; City Attorney Anne Razo read the short title. The motion to adopt on first reading passed on a roll call vote 4–0 (Abby Wilder absent). Bowers‑Shultz then moved to table Ordinance 2026‑10 to the June 2 meeting; Scott Murray seconded and the motion to table was adopted.

The council followed the same procedure for Ordinance 2026‑11, the Utility Bond Ordinance: it was placed on first reading and read by short title, adopted on first reading by roll call 4–0 (Wilder absent), and then tabled until June 2.

Next steps: the council scheduled a public hearing on the rate ordinance for June 2, and staff will complete the bid award on the construction contract on May 21. The council did not adopt final rate or bond ordinances on May 19; both were advanced for further consideration and public comment at the June 2 meeting.