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City staff outline $25M+ wastewater and $9.7M water bond packages; officials say no immediate rate increase expected
Summary
City utility staff presented bond ordinances to fund water-main replacements and a major wastewater upsizing project. Financial advisers said the work can be financed without raising rates this year; council moved to approve the ordinances but the transcript does not include a recorded final vote.
Utility staff and the city's financial advisers gave a technical presentation on two bond ordinances intended to fund water and sewer infrastructure improvements.
Utility leadership described a series of projects including replacing aging cast-iron mains, upsizing water mains along Carmel Drive and Kinzer Road, and a deep sanitary sewer replacement that would increase a 12-inch clay line installed in 1969 to an 18-inch main to serve growing Midtown capacity needs. On the water side the presentation included placeholders for projects (for example a $2,000,000 placeholder for replacing a 10-inch cast-iron main). The presenter said these are long-life assets and that some work coordinates with county road projects.
Scott Miller of Baker Tilly summarized financing and said the water side showed about $9.697 million for construction and related costs while wastewater construction was presented around $15 million, with the plan to take outstanding BANs into long-term financing. "The great news is Lane already stole the thunder. We are able to do this without a rate increase on either water or wastewater," Miller told the council. Councilor motioned to approve the two ordinances as amended; the transcript excerpts include the motion but do not record a consequent roll-call tally in the provided segments.
Next steps: if council adopts the ordinances, staff said they will initiate a Standard & Poor's rating process, market the bonds (private placement or negotiated sale) and aim for pricing around mid-September with closing in early October.
