Republic file photo Columbus City Hall.
City officials are revising a bond ordinance on waterworks projects in order to save $3 million by working with the state.
Columbus City Council has approved the first reading of an amended ordinance authorizing the issuance of bonds to pay for water infrastructure projects. Ordinances require two readings to pass, and the council’s next meeting is set for Aug. 16.
Per the ordinance, the maximum cost of the projects is estimated to be $24.09 million. This will be financed by a combination of bonds, bond anticipation notes, cash on hand and “other legally available sources.” The ordinance states that, in order to fund the work, the city needs to issue waterworks revenue bonds in an amount no greater than $22.2 million. Bond anticipation notes not exceeding this same amount may also be necessary.
The projects covered by the $24 million estimate include new wells, wellfield improvements, water transmission main and distribution system replacements and improvements, a new water storage tower, water storage improvements, a new pumping station, removal of two existing pumping stations, water treatment plant improvements, and master plan implementation.
“It doesn’t take long to add up to $20 million, but good projects allow us to stay on track with the master plan,” said Columbus City Utilities Director Roger Kelso.
According to Stan Gamso, Columbus Utility Service Board attorney, the council previously approved a waterworks bond in August of 2020.
“Since that time, utilities has been presented with a wonderful opportunity, and that is to now use State Revolving Funds for projects, as opposed to the bond that was publicly issued,” he said. “As a result, we have a tremendous savings of about $3 million over the course of the life of the bond.”
According to the Indiana Finance Authority, the State Revolving Fund provides low-interest loans to Indiana communities for projects that improve sewer and water infrastructure.
“It will allow us to accelerate some of the projects that we initially had planned and had to forego because of bond limitations and then also give us an opportunity, as we go through a few more years, down the road, to issue another bond to do something similar,” said Kelso.
Adam Steuerwald with Barnes & Thornburg said the State Revolving Fund requires the city to incorporate certain terminology into its bond ordinance, so it was necessary to amend and restate its ordinance in order to issue State Revolving Fund bonds.
