Ready to Finance Your Long-Term Control Plan Projects?
Articles: Utilities Related, Latest News
Many communities are facing the overwhelming costs of remediating combined sewer overflows (CSO) in conjunction with their Long-Term Control Plans (LTCP).
This is a great time to consider financing any projects. Utility revenue bonds have been well received in the marketplace, and these bonds are sought after by investors. On top of that, interest rates are still at historic lows.
Although communities may have 20 years or more to complete their Long-Term Control Plan projects, we don’t recommend putting it off. The longer you wait, the more likely it is for construction costs and bond interest rates to go up.
The City of Jeffersonville has issued over $70 million of long-term debt to pay for LTCP projects over the past few years. Much of this debt was issued at interest rates below 2% through the SRF Program.
“The City has been very progressive in dealing with its wet weather CSO problems. Over the past few years the City has implemented a series of rate increases and financed wet weather projects including replacing seven major lift stations and a new second wastewater treatment plant”, said Len Ashack, Director of the Jeffersonville Wastewater Department.
Another CSO community Terre Haute produced a LTCP plan that balanced being affordable for their community and acceptable to the Indiana Department of Environmental Management (IDEM).
Terre Haute recently secured about $45 million in financing for the first of four implementation phases of its Long-Term Control Plan.
“The interest rates were very favorable,” said Chuck Ennis, city engineer, for the City of Terre Haute.
Getting financing in place now for the initial phases of your projects allows you to take advantage of current favorable market conditions, and it puts you on the way to completing these projects to improve the quality of your waterways.
If you have questions or need help creating a funding plan for a Long-Term Control Plan for your CSO, please contact us at footnotes@umbaugh.com
Give Article Feedback »
|
E-mail Umbaugh »
|
Print Article »
Information in this article was believed current as of the date of publication. As you know, changes occur frequently. The information presented is of a general educational nature. Before applying to your specific circumstances, please contact us at footnotes@umbaugh.com.