Ogden City Water/Sewer Bonding Update: Live Blogging From the City Council Chambers Tonight

Ogden Mayor Caldwell: $28 mil sitting in bank; wants to borrow $18 mil more

Big doin's in the Ogden City Council Chambers tonight, as our Ogden City Council continues its consideration of  a "preferred" Caldwell administration proposal which could result in as much as $18 million in combined Water and Sewer Utility  bonding, including much-needed construction funding for a new water treatment plant for the Water Utility.  Tonight's the night that the council will hear public comments on the Mayor's preferred proposal, along with at least five other Council-requested options set forth below.  As an added bonus, O Weber County Forum political wonks, we're delighted to report that Ogden City watchdog Dan Schroeder has just now confirmed that he'll "be there and can provide some live coverage." For a brief overview of the various options on the Council table, we set forth the "essentials" below, gleaned from tonight's council packet:

The Council will hold a public hearing to accept input on issuance of  bonds to fund the water treatment plant and various water distributions projects and various storm water projects, including the Harrison Boulevard project.

Sewer and Water Revenue Bonds-Water Treatment Plant
Bond Parameters Resolution 2013-19 set the parameters for funding the2013 Series Bonds. The parameters for the bonds are as follows:

• Not to Exceed Amount: $15,500,000
• Not to Exceed Interest Rate: 6%
• Not to Exceed Term: 35 years
• Not to Exceed Discount: 3%

The Parameters Resolution set a cap on the amount, interest rate and term. However, LYRB estimates that actual bond amounts and interest rate will be much lower. The Administrative Transmittal set forth the Administration’s original recommendation. It set the actual approximate amounts as follows:

• Actual Approximate Amount: $13,700,000
• Actual Approximate Interest Rate: 4.7%
• Actual Term: 30 years

Approximate Issuance Costs: $360,000
Repayment of the debt service of $850,000 annually would come from the water utility.

At the Council’s request, the Administration provided other options for the Council’s consideration as follows:

Click to enlarge image

Storm Sewer Revenue Bonds – Harrison Boulevard Project
Bond Parameters Resolution 2013-20 set the parameters for funding the 2013 Series Bonds. The parameters for the bonds are as follows:

• Not to Exceed Amount: $5,500,000
• Not to Exceed Interest Rate: 6%
• Not to Exceed Term: 25 years
• Not to Exceed Discount: 3%

The Parameters Resolution set a cap on the amount, interest rate and term. However, LYRB estimates that actual bond amounts and interest rate will be much lower. The Administrative Transmittal indicates that actual bond issue will be as follows:

• Actual Approximate Amount: $4,700,000
• Actual Approximate Interest Rate: 4.12%
• Actual Term: 20 years
• Approximate Issuance Costs: $180,000

Repayment of the debt service, which will be approximately $340,000 annually, will come from the sewer utility.

Tonight's council meeting will kick off promptly at 6:00 p.m.  If you can't make it to the Council chambers tonight, do the next best thing, and tune into Weber County Forum for Dan Schroeder's ever-informative live blogging.

With something like $28 million in city Water and Sewer funds drawing a measly 1% interest, will the City Council nevertheless simply rubber-stamp the Mayor's "Borrow to the Max" approach?  Or will the City Council, during the 2013 Municipal Election season, avoid the ire of the lumpentaxpayers, tap into the Mayor's ridiculously bloated $28 million "slush fund," and instead adopt a more fiscally-manageable "common sense" approach?

We guess we'll find out tonight, eh, folks?

Update 8/20/13 5:49 p.m.:  Eureka, WCF readers.  Dan S. has just now logged into Weber County Forum, and is now live-blogging from the City Council Chambers.  Click "comments" to read Dan's real-time posts!