The city of Springfield plans to issue roughly $41 million in bonds during the week of May 11 to complete sewer improvement projects outlined in plans Springfield City Council approved late last year.
The bond sale – which will be open to the public – will finance an expansion of the anaerobic digester – used to break down biodegradable material – at the Southwest Wastewater Treatment Plant to replace aging equipment and accommodate community growth, as well as rehabilitation of approximately 100,000 linear feet of clay pipe to reduce excessive inflow and infiltration within selected sub-basins, according to a city news release.
The sewer improvement projects, which were outlined in both the 2011 Early Action Plan and the Overflow Control Plan – the latest version council passed
in December – are designed to reduce sewer system overflows and comply with federal environmental regulations.
The bonds, which have been rated Aa2 by Moody’s Investors Service, would be repaid with sewer revenues, according to the release. Moody’s highest rating is Aaa, one notch above Aa1.
The long-term plan to shore up leaks is estimated to cost taxpayers $200 million over 10 years, though sewer bills can’t increase beyond what is already scheduled through 2017 via the $50 million Early Action Plan. City officials have estimated sewer rates would need to increase by around 6 percent annually after 2017 through the end of the 10-year plan.
The city is offering local individual investors a chance to purchase the bonds, according to the release. An order period will be established on the day of the sale specifically for retail investors, and interested persons may contact their broker or the local office of Oppenheimer & Co. Inc. at (417) 886-8005, the release said.
Moody’s also has affirmed the Aa1 rating on the city’s outstanding general obligation debt, according to the release.
“We anticipate the city’s financial operations and reserve position will remain stable in the near term given continued improvement in financial metrics, including liquidity and general fund balance,” Moody’s said in a statement issued about the bonds.[[In-content Ad]]
