Council approves preliminary steps for up to $10 million sewer revenue bonds to fund Maumelle pump station

The North Little Rock City Council authorized the mayor and city staff to proceed with preliminary steps for issuing up to $10,000,000 in sewer improvement revenue bonds to fund sewer infrastructure work related to Maumelle.

"This $10,000,000 is for the first phase of the pumping station construction for at the Maumelle Wastewater Treatment Plant and, it includes some other equipment and treatment facilities as part of the pumping station scheme," Michael Clayton, executive director for North Little Rock Wastewater, told the council after members asked whether the bonds would raise rates for customers.

Clayton said the project is the first phase; a later phase will include a force main (a pressurized pipeline) to transfer flows to the White Oak treatment plant. He told the council the pumping station is designed to handle up to 6,000,000 gallons per day and that current flows requiring transport are about 3 to 3.5 million gallons per day. Clayton said moving flows by pipeline and pump station is more cost-effective than expanding or upgrading the Maumelle treatment plant and avoids imposing a special surcharge on Maumelle customers.

Council members asked whether issuing revenue bonds would jeopardize other city bonding capacity. Amber, the city's chief financial officer, confirmed that revenue bonds for the sewer enterprise do not jeopardize the city's general obligation bonding for other purposes.

Council moved to adopt the resolution authorizing staff, bond counsel and underwriters to prepare a preliminary official statement and proceed with marketing the bonds. The measure passed on a recorded roll call vote with all present council members voting yes.

The resolution directs the mayor and relevant counsel to proceed with preliminary financing steps; subsequent ordinances or bond documents will be brought to council for final approval and sale.