Council hears first reading on $16.1M water and sewer revenue bonds for Jefferson Street projects

Councilor Perry Eisenach outlined two loans the ordinance would authorize: a $7.5 million sanitary sewer loan to finish two sewage pump stations already under construction and up to $8.6 million for drinking water improvements including replacement of an aging pump station at the west end of Jefferson Street and full water‑main replacement along that street.

Eisenach said both loans will be approximately one percentage point below market because of federal subsidy. He explained that the water‑main replacement will affect vehicular access on Jefferson Street and that construction will not start until June 2027 to avoid the school year; the work is expected to be completed before school resumes in August 2028 and will impact one school year. He also said the city attempted to secure grant funding but did not qualify because Winchester’s median household income and water/sewer rates place the city above grant thresholds.

Councilors asked about grant opportunities and construction timing; Eisenach reiterated the applications and funding sources (Virginia Department of Environmental Quality for sewer and Virginia Department of Health for water). The item was taken as a first reading and will return for further consideration at the next meeting.