Development News for Manchester, Tennessee

City Council Moves Forward with $20 Million Bond for Water and Sewer System Upgrades

The City Council discussed and is set to authorize a bond issuance of up to $20 million for water and sewer system improvements. The initial phase of $10 million is planned for the 2627 budget year, with a potential second phase to follow. The debt will be structured as water sewer revenue and tax bonds, prioritizing water and sewer revenues for repayment, with the city's general obligation rating backing it to secure lower interest rates. The proposed interest rate for analysis is 4.25% over a 30-year financing term, with competitive bidding to determine the final rate at the time of sale, expected shortly after the July 4th holiday. The funds will be allocated to infrastructure (70%), water supply (15%), and plant-level improvements (15%), addressing issues like infiltration, pipe replacement, and potential future expansion needs, including a new water tower. The city has a reserve fund of $8.7 million for the water and sewer department.