The second priority involves lines running along Ranch House Road from the north side of Interstate 20 to Trinity Drive. The cast-iron pipe was not installed properly, with most of it sitting on solid rock, rather than a bed of sand, according to Petty.
“The legalese [in the bonds] will have language that says the bonds will be paid back based, at least partially, from property tax,” Martin said. “The other option is to have the bonds paid back through revenue stream. If I remember correctly, the bond expert stated that the probably the best salable bonds for our purpose would be both – property tax and revenue-bearing. The analysis, at least the rough analysis that we’ve seen, indicates that the revenue from the water system would be sufficient over the life of this if we went the (certificates of obligation) route, that the revenue stream would be sufficient to pay the loan off so it would not affect the property tax.”
City Administrator Matt Shaffstall compared it to buying a car with your spouse to qualify for a better loan package but only one pays the note.
“You are pledging both, which gives you a better rate, but the analysis all indicates there is sufficient revenue in the water to pay the note,” Shaffstall said.
“It needs to be done. I don’t think there’s any doubt. It needs to be done because we’ve had water issues forever,” resident David Fritz said. “I think no matter which option council goes with, council would be well served to broadcast every nuance so that the public can be on board with you and not feel left out.”
“We’ve been here for 33 years, about the time the city bought the water system, so we’ve seen the system being fixed over the years and over the years and over the years,” one resident said. “Will this, this cast-iron pipe problems, will this take care of the problems we’ve seen over the years to where there will just be regular maintenance or new pipes added for divisions or businesses or whatever?”