The Milford Town Council passed an ordinance Tuesday, Nov. 7, authorizing $1,600,000 in bond revenues to be raised, $810,000 of which will pay for renovations to the town’s water treatment plant. (Photo by David Hazledine)

MILFORD — Milford Town Council held a special meeting Tuesday evening, Nov. 7, in which it voted to adopt ordinance 2017-10, authorizing the issuance of bonds to fund the federal and state mandated improvements to its wastewater treatment plant.

Additionally, the ordinance authorizes the refunding of the 2004 bond issuance, which financed the plant’s construction. The total amount raised is not to exceed $1,600,000.

According to Ross Hagen, an accountant with H.J. Umbaugh and Associates, the firm overseeing the financing, the funds raised from the bond issuance will go into two “cost pools.” One will pay the $810,000 for plant improvements and the other will cover the balance remaining on the 2004 revenue bonds, thereby “killing two birds with one stone.”

Hagen commented he was confident “we’ll find savings” from the refunding due to the favorable environment of current interest rates in the open bond market. He expects the bonds to be issued at around 3 percent interest, in contrast to the roughly 6.5 percent rate on the 2004 loan.

Tuesday’s meeting kicks off a 20 day notice window in which the public may comment on the ordinance. The bond sale will likely take place the last week of November and close before Christmas, making the funds available before the end of the year.
The wastewater plant renovations are expected to begin in the spring 2018.