Baker Tilly outlines $20M bond and phased rate increases for wastewater and stormwater

Consultants from Baker Tilly presented alternatives for financing about $20,000,000 in wastewater and stormwater capital projects and the user-rate effects of those choices. Scott Miller (Baker Tilly) and Joey Mazy walked the council through level and wrapped amortization structures, payment‑in‑lieu assumptions and phased rate increases meant to align debt service with project schedules.

Joey Mazy summarized one scenario as a roughly 27% increase across three phases for wastewater with the phases divided into 9%, 8% and 8% increments and an average $13.20 per month increase on a typical residential sewer bill at completion. He said, “When taking into account your calendar year 2024 collection and treatment receipts, you're looking at about a 27% increase, across 3 phases.”

The consultants explained that including an assumed payment‑in‑lieu (PILOT) from the sewage works plant location within city limits could raise available annual receipts by up to about $976,000 (75% assumption) or $1.3M (100% assumption) and would change the resulting monthly impact. They also described a wrapped‑debt option that pushes principal payments later to reduce immediate rate pressure but increases interest costs over the life of the bonds.

Detailing project uses, consultants listed pump‑station rehabilitations, force‑main upgrades, a buy‑operate‑transfer in South Clarksville and a $500,000 contingency for emergent repairs. They recommended the council consider the number of phases (three vs. five) and inflation assumptions; Baker Tilly said it could rerun scenarios (e.g., 3% vs. 5% inflation) and return with adjusted projections if the council requests them.

Council members asked for combined worst‑ and best‑case totals and a scenario that also included the fire‑hydrant fee; consultants agreed to provide revised numbers and additional alternatives for council review.