Sewer plant, stormwater fixes, new cop shop/courthouse on $18.4 million tab for Fville

By JOHN MUNFORD
jmunford@TheCitizenNews.com

Fayetteville will soon be cashing in on a big way to jump start three different large-scale projects.

Over $18.4 million in 20-year bonds has been sold on the city’s behalf, with the lion’s share going toward refurbishing the mothballed sewer plant, refinancing old water and sewer bonds and creating a stormwater management utility.

Those funds will also pay for construction of a new police station and courthouse at the intersection of Jimmie Mayfield Boulevard and Bradley Drive. That project is already well into the design phase and construction may begin in a month, officials said.

By using the bond method of financing, the city avoided the need for voter approval in a referendum as would be required for other long-term financing. City officials said this is typical, particularly since utilities are involved and money for those bonds will come from sewer, water and stormwater fees.

Bonds issued for the new law enforcement center totaled $4.15 million, and over the 20-year life of the lease-purchase agreement the city will pay $346,000 annually.

Unlike the law enforcement center bonds, the bonds for the sewer and stormwater work will be repaid with revenues from sewer and stormwater bills. The City Council is in the process of creating a stormwater utility which will charge $2.95 per residence and a varying amount to businesses for projects to improve stormwater flow in the city.

Council chose to issue the stormwater bonds so it can have financial muscle to make improvements quickly instead of waiting for money to collect over a period of months before taking any action.

Already, city crews have been working on stormwater improvements in several areas of town, specifically those which experienced flood problems in the past year during periods of heavy rain.

The bonds for refurbishing the city’s old sewer treatment plant will dramatically increase the city’s sewer capacity. Officials said the current plant is operating near capacity and cannot be shut down effectively for maintenance.

After the plant is refurbished, it will be able to treat 2.5 million gallons a day, the same amount the current plant can treat. The city is permitted by the state to discharge up to 3.75 million gallons a day of treated sewage into Whitewater Creek.

Fayetteville’s population is expected to almost double in the next 11 years from 13,277 this year to 25,205 in 2014. As of September, the city had treated an average of 2.06 million gallons a day of wastewater.

Combined, the stormwater and sewer plant refurbishment bonds total $6.726 million while the refinancing of the 1996 issue of water and sewer bonds totaled $7.589 million.

Closing on the bond sale is set for Jan. 7.