Committee forwards ordinance to authorize up to $16.1 million in water and sewer revenue bonds

City staff introduced Ordinance 0202633 to authorize the issuance and sale of water and sewer system revenue bonds in an aggregate principal amount not to exceed $16,100,000 to finance specific capital improvements.

Staff explained the ordinance covers two separate project loans: $7,500,000 for sanitary sewer improvements (replacement of two pump stations already under construction, with a DEQ loan program) and about $8,540,000 for drinking-water improvements, specifically replacement of the Jefferson Street pump station and upsizing the Jefferson Street water main from 12 to 18 inches. Staff said they pursued grant funding but the city's median household income exceeded program thresholds, so the projects will proceed with subsidized loans that carry interest about 1% below market.

Timing: staff said the sewer pump stations should be complete in early 2027 and the Jefferson Street water-main work is scheduled to begin in June 2027 (coinciding with school summer break) with an expected one-year construction period. The work will require closing Jefferson Street to through traffic while maintaining resident access; staff said the road will be repaved following construction.

The committee voted to forward the ordinance and the two companion resolutions (one for the sewer project and one for the water project) to the full council with recommendations for approval so the city can finalize loan terms and move forward with project financing.