Councilors Discuss Sewer Project Funding

Members of the New Sharon City Council met with financial planner for public projects Travis Squires of PiperJaffrey Aug. 1 to discuss financing of the city’s sewer project. The council discussed options and will make a decision on an ordinance for the project at the Aug. 15 meeting.

Squires offered up three options for council consideration. Option 1 finances the project with 100 percent of revenue from sewer revenue. Option 2 would be paid with 100 percent of General Obligation bonds.

Option 3A includes a 50-50 split between sewer revenue bonds and general obligation bonds. Option 3B would be a 75-25 split. Sewer revenue bonds would make up the largest portion with general obligation bonds making up the remainder.

Squires said whichever option is selected a certain amount of money must be raised each year to cover the payback of the loans. “You will need to raise $155,000 plus a contingency of $20,000 for $175,000 per year,” said Squires. “The total project cost is $2.376 million with a 20- year payout.”

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