Review Bonding Opportunities for Water Treatment Plant

With the possible construction of a water treatment plant and the current market conditions in regard to historically low interest rates, staff thought it would be beneficial to present what different bonding scenarios could look like if the city were to bond a portion of the water treatment plant.  

It is currently stated that the plant will be funded in its entirety, $32.4M by the sewer and water funds.  

The City's Finance Consultant, Stacie Kvilvang, from Ehlers, will be presenting what bonding could possibly represent in terms of principal amounts,  interest rates, and terms.   A summary of these options is below.  The options were based on a May 2022 issuance and as such .75 basis points  was added to allow for any current increases in interest rates.

1	$5,125,000	10	1.89%	$551,827
2	$10,000,000	10	1.89%	$1,077,454
3	$16,255,000	10	2.00%	$1,902,418
4	$5,125,000	15	2.13%	$926,248
5	$10,000,000	15	2.13%	$1,806,353
6	$16,255,000	15	2.27%	$3,200,923

20 minutes

Finance Director & Finance Consultant, Stacie Kvilvang

Informational only:  Review Bonding Opportunities for Water Treatment Plant