Montevideo City Council approves wastewater project bonding
MONTEVIDEO -- The city of Montevideo is seeing the benefits of highly competitive bids for its wastewater treatment plant expansion as it finalizes funding for the project.
The City Council took action at its regular meeting Monday to issue $10,379,466 in general obligation notes through the Minnesota Public Facilities Authority. The amount represents the city's total debt for the project, City Manager Steve Jones said.
The city will pay off the debt at a 2.8 percent net interest rate.
The city earlier awarded construction bids totaling more than $10 million on what was estimated to be a nearly $17 million project. The project's total cost is $14.8 million when engineering and other services are included.
The city has received a $4,478,498 grant for the project.
Jones said the city is now in the process of recalculating its sewer rates. Council members had earlier approved a stepped series of rate increases to fund the project. Thanks to the competitive bids, Jones said the council has decided not to implement the first rate hike scheduled for this July.