Weatherford Democrat

Local News

January 18, 2014

WP considers revenue bonds for water lines

(Continued)

Replacing the cast iron pipes with C900 PVC pipe reduce nearly 100 percent of maintenance on those lines, Petty told her.

“I think that would need to get out to the public,” the woman said.

Councilman Bernard Suchocki said he sees not only a water leakage issue but a water quality issue and called the decision to seek certificates of obligation funding rather than general obligation funding a difficult one.

Voters would have to approve a general obligation bond and it would take more time and money to do so, council was told. The city council could approve certificates of obligation funding within in the next few months, taking advantage of better interest rates and meeting the TWDB deadline, city staff said.

“You’ve heard me say I’m highly interested in lowering tax rates but my concern is any debt we take on, if debt is going to affect the tax rate, then I’m firm in wanting it to be blessed by a vote of citizens, Martin said. “If we can do the CO based on a revenue stream, I’m in favor of a CO.”

The city is in the midst of a rate study that would allow for adjustment of revenue from the water system to pay the bonds, Neverdousky reminded the council.

Council member Amy Podany argued for going the general obligation bond route, saying she believed it was time for the city to do more for the water system than just replace iron pipes and would like to see it put to voters.

With most council members advising they wanted to pursue certificates of obligation funding for $685,000, staff was advised to begin preparing and bring it back to city council for consideration.

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