Bedford leans toward a 20-year certificate of obligation to fund stormwater projects

Finance Director Brady Olsen and public-works staff briefed the council on the stormwater fund and a slate of projects identified in recent drainage studies. Olsen said the city currently expects "about $3,700,000 in the fund by year-end" and presented two consultant-rate scenarios: a lower-rate scenario tied to a 20‑year structure and a higher-rate scenario with a longer payoff. Staff described two financing vehicles: (1) certificates of obligation with a tax backup (which staff recommended for a lower interest cost) and (2) stormwater revenue bonds payable only from fee revenue (higher interest, more risk).

Council and staff discussed timing and capacity to design and construct projects; staff noted design typically requires roughly a year and that the city could phase multiple designs concurrently and begin construction as design finishes. Multiple councilmembers urged staff to pursue grants where eligible (staff noted certain grants might cover 75% of upsized culvert costs) and prioritized addressing exposed sewer lines. After discussion, Mayor Dan Cogan said he would "go with staff's recommendation" to pursue certificates of obligation on a 20‑year schedule so the city can begin projects sooner and 'sleep at night knowing we're taking care of business.' Council asked staff to prepare formal materials for a future bond/fee decision and to return with an ordinance or resolution for public consideration.