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Peekskill council authorizes up to $11.35 million in bonds for sewer improvements
Summary
Council approved Resolution J1 to authorize issuance of up to $11,347,952 in bonds to finance sewer system improvements tied to larger grant applications; city officials said the bond resolution enables grant applications but does not itself borrow the money.
The Peekskill Common Council unanimously authorized a bond resolution on Sept. 8 that allows the city to issue up to $11,347,952 in aggregate principal amount of bonds to finance sewer-system improvements in the riverfront area and connections to the treatment plant.
City staff explained the bond resolution is a standard procedural step required by certain grant and Water Infrastructure Improvement Act (WIA) application processes: the city must show full bonding authority for the project when applying, even though grant awards are expected to cover a portion of costs. A resident asked whether the added bonding would increase the city's debt and affect its credit rating; the city manager answered, “The bond resolution doesn't mean that we borrowed the money. The bond resolution means that we can borrow the money.” He said the city is pursuing several grant options that could cover 25%, 50% or 75% of the project cost and that if grants do not materialize the city would return to council with alternate funding plans.
Council voted to adopt Resolution J1 as presented. The resolution was listed along with other grant and procurement items on the evening's consent portion of the agenda.
