Owensville engineer recommends $10 million water and wastewater bond for August ballot

The City of Owensville’s engineer recommended the city prepare a $10 million bond to finance upgrades to the water and wastewater systems and to increase the city’s flexibility for grant applications. Engineer Travis Hernandez told the Board that SRF fixed rates are "approximately 2 percent," construction should be completed within two years and the loan term could be 20 years, and identified USDA, CDBG and DNR as potential grant sources.

Hernandez said the revised project memo removes paving costs so the bond proceeds would focus on utilities; he also said Owensville’s current water rates rank eighth-lowest and the city should reach roughly 1% of Median Household Income to receive favorable MDNR grant points. The engineer recommended splitting the proposed $10 million between wastewater and water and placing the bond on the August 5, 2025 ballot to open opportunities for grants and reduced-interest borrowing.

Alderman Cathy Lahmeyer raised concerns about potential long-term microplastic risks in plastic piping and referenced National Science Foundation guidance; the Board discussed the standards and system liabilities but took no formal action specific to pipe materials at the special meeting. Alderman Denise Bohl moved and Alderman Lahmeyer seconded a motion to prepare the bond ordinance for the May 5, 2025 meeting; the motion "carried without dissent," and the Board instructed staff to draft the ordinance for the next regular meeting.

The Board did not vote on any bond amount beyond approving preparation of an ordinance recommending $10 million; further details and any final ballot language will be developed at the May 5 meeting.