Funds aimed at water and sewer repairs
By Barb Pert Templeton
Capitol improvement bonds totaling $3 million dollars for anticipated repairs to the city’s water and sewer system next year were approved by a resolution of the Marine City Commission.
Resolution 023-2025 – Authorizing 2025 Capital Improvement Bonds was unanimously approved by the commission at an Oct. 2 meeting. Commissioner Trish May was absent from the meeting.
At the start of the meeting, Stephen Hayduk, vice president at Bendzinski & Co. municipal finance advisors, did a brief presentation explaining how the bond authorizing resolution works.
“So, what you have in front of you is a resolution that authorizes up to $3 million of limited tax general obligation bonds for the city to use,” Bendzinski said.
He went on to say the proceeds can be used for a number of reasons including to construct, furnish and equipment improvements to the city’s existing water supply and sewage disposal system. That work might include:
· installation, replacement, rehabilitation and lining of water mains and sanitary sewer lines; installation.
Stephen Hayduk, vice president at Bendzinski & Co. municipal finance advisors, did a brief presentation explaining how the bond authorizing resolution works.
· replacement and rehabilitation of water meters; improvements to the city’s water and wastewater treatment plant.
· storm water improvements to the city, and related site work and other associated improvements.
“So, these are limited tax general obligation bonds. They do not allow the city to raise taxes. They are payable from available revenues on hand, available taxes under the city’s charter,” Hayduk said. “It also authorizes the city manager and the city treasurer to move forward with this bond issue without having to come back to council.”
“These bonds are callable Oct. 1, 2035, meaning they can be paid off early on or after that date,” he added.
City Manager Michael Reaves said the $3 million capital improvement plan is to assist with the repairs that have arisen since the water and sanitary sewer project began. Items that would come out of those repairs would include the waste water treatment plant and other areas.
The question is likely to come up about just how did the city handled repairs from Phase One and Phase Two of the project without having to take out bonds. Reaves said the city utilized existing budgeted money in the sewer fund and there are no longer any funds available for Phase Three.
Construction starts after the first of the year for Phase Three and that’s what the bulk of the bond money will be used for, Reaves added.
Unfortunately, right now the city doesn’t know what type of repairs to expect in Phase Three therefore how much will be needed to cover things isn’t known.
“The $3 million dollars is for that purpose and if we don’t utilize the entire $3 million dollars, let’s say there’s $500,000 left, we’ll apply that to other things,” Reaves said.
Marine City Manager Michael Reaves.
The bond funding is also outside of any other possible funding sources the city might find via grant monies.
Commissioner Sean O’Brien wanted to make sure he understood the bonds correctly, asking Hayduk to reiterate that taxes can’t be raised for residents with these bonds. O’Brien referred to a recent town hall that announced possibly raising water rates for residents but Hayduk explained the items are two different issues completely. He said the bonds won’t promote any new taxes.
“I just wanted to make sure we’re clear on that both for myself and for any viewers for the public that are going to hear no tax raise and then get confused at where we might be going,” O’Brien said.
As the presentation discussion concluded the bond item came up later on the agenda as Resolution 023-2025 and was unanimously approved by the commission.
