Commission considers $3.27 million bond for storm drain improvements
This week, City Commissioners will consider authorizing the debt issuance of a $3.27 million bond from the Department of Natural Resources and Conservation for storm drain upgrades.
The amount includes construction, legal fees and loan reserves and the terms of issuance are 2.5 percent per annum for 20 years.
In March, the commission awarded a contract in the amount of $3,283,284.00 to Central Excavation for the 18th Street Storm Drain Improvements Phase 2B.
Improvements to the 18th Street storm drain, among other upgrades to the city’s storm drain, have been mentioned for the last several years during the work sessions and public hearings of the rate setting process.
This financing will pay for the phase of the 18th Street Storm Drain improvements that include 4th Avenue South to 8th Avenue South and 11th Avenue South to 15th Alley South.
According to the city, the storm drain utility rates are capable of supporting the debt issuance and total annual debt service payments, including principal and interest, will be about $208,766.
This is not a bond issue that will go on any public ballot and user fees will be used to make the debt payments.
Without the financing, staff wrote in their report, the city would have to cancel the contract with Central Excavation.