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Elkton Council Authorizes up to $4M Bond for Drinking Water Project After Public Hearing
Summary
After public comment and a staff overview of low-rate loan options, Elkton Town Council voted 6-0 to authorize a general obligation revenue bond not to exceed $4 million to finance drinking water improvements.
Elkton — The Town of Elkton on Oct. 21 voted unanimously to adopt a resolution authorizing the issuance of a general obligation revenue bond in an aggregate amount not to exceed $4,000,000 to fund drinking water improvements.
Town Manager Greg Lunsford told council that the town needs the project and outlined financing options available through state programs. "The Town needed to do the drinking water project," he said, adding that the VDH - Virginia Resource Authority offered loans with an interest rate "between 1.6 - 2.6%" and that the town was awaiting U.S. Department of Agriculture approval for the project. Council later approved the measure by roll call, with a recorded vote of six in favor and none opposed.
The bond drew public opposition during the hearing. Resident Wayne Printz told council he "opposed borrowing the $4,000,000 for the drinking water project," saying the town should rely on funds from land sales and ARPA before taking on debt. Another resident, Randell Snow, said he was not convinced borrowing was necessary and urged the council to ensure they were advised by knowledgeable people on the matter.
Chris Michael, a resident who addressed the council, said water infrastructure is essential to all citizens and acknowledged that rates may rise to pay for improvements. The council closed the public hearing before returning to the regular agenda and approving the resolution.
Next steps discussed by staff included the administrative work required to secure the loans and awaiting the noted federal approval. Council also later accepted a bid for Phase 1 of the water line work and adopted a related $1,000,000 resolution during the same meeting.
