The Marshall County Regional Sewer District Board met Wednesday, January 10th in the second-floor meeting room of the County Building.
The board took the beginning step of preparing to obtain a bond for the first project, which will be around the lakes west of Plymouth.
Members approved the bond parameters letter prepared by Baker Tilly.
Tylor Coffel, a senior consultant from Baker Tilly explained the parameters letter saying it’s a listing of information that is incorporated in the bond ordinance the board also reviewed last week. It lays out the maximum principal for both the bond anticipation note and the bonds for the project with a not to exceed amount project amount although they increase it by about 20% so the project doesn’t go over the amount, and they would have to readopt the bond ordinance.
The estimated cost of the Primary Service Area (PSA) 1 project with a cushion is $25,525,000. This initial project area includes Lake Latonka, Mill Pond, Kreighbaum Lake, Cook and Holm Lakes along with Myers and Lawrence Lake.
The bond ordinance was prepared by Ice Miller, bond council for the Regional Sewer Board. It shows the maximum interest rate at 7% which is set by state statute.
This project is targeting the State Revolving Fund (SRF) for this project, and it was stated the interest rate would be in the 2% range. It was anticipated that this project may qualify for some forgivable bonds too from the SRF which would essentially be grant money.
The Bond Anticipation Note (BAN), which is the temporary financing would be replaced and paid off while the bond will be the permanent financing. The interest rate for the BAN is in the 4% range. They are targeting early to mid-March for the BAN closing. The BAN amount is estimated at $3,075,000.
The Marshall County Regional Sewer Board unanimously approved the bond ordinance with all 7 members voting.
Ken Jones from the engineering firm, Jones Petrie Rafinski said the preliminary project schedule shows construction completion and operations expected in October to November 2026. To make that timeline, Jones said it’s basically full speed ahead almost immediately with final design efforts, mapping the area, putting together the plans and submitting for all the construction related permits with it going to bid in late winter or early spring 2025, about a year from now. He anticipated the bid opening in May 2025. Jones said that is when the BAN would be paid off and the bond would take over for the construction phase of the project.