Yuba City to issue up to $26M in bonds to finance wastewater system improvements
Yuba City plans to issue up to $26 million in bonds to finance a number of improvements to the city’s aging wastewater system. Rate increases approved in June by the City Council for those who use the system will cover the cost.
City Council members approved the issuance of the bonds during a meeting on Tuesday to “rehabilitate and replace aging equipment and treatment process units to extend their useful life and meet future National Pollution Discharge Elimination System permit requirements for the city’s wastewater treatment plant,” a staff report states.
The city’s adviser estimates the annual debt service for the bonds to be about $1.3 million per year for 30 years.
“(City Council) already increased rates in anticipation of this project. The city does long-term financial planning, and this has been an anticipated project for quite some time, so it was built into the city’s rate structure,” said Robin Bertagna, city finance director.
The improvements are just one project of many identified in the 2006 Wastewater Master Plan. The project has been in the works for more than a decade, said Spencer Morrison, accounting manager and city treasurer. Plans and specifications were approved by the City Council in May.
The city opened the project up for bids in May and is currently evaluating them. A bid won’t likely be awarded until October, Morrison said.
Bertagna said the city is expecting to close on the bond sales by Sept. 25. Once financing and a contractor are locked down, the project is expected to take anywhere from 18 months to 24 months to complete. Main number .................... Steve Miller ...................... Andrew Cummins .............
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