Council hires financial advisors, bond councils

By BRAD KELLAR
Herald-Banner Staff

GREENVILLE November 28, 2007 01:25 am

— The City Council Tuesday took the first steps toward issuing $20 million in bonds for the upgrade of the Wastewater Reclamation Center, by hiring firms to serve as financial advisors and bond councils for the project.
If all goes as planned, the Council could act next month to authorize the defeasance of some of the existing debt and approve the sale of the bonds, which would increase the city’s water and sewer system debt.
The Wastewater Reclamation Center is in need of an upgrade in order to comply with the requirements of the city’s wastewater discharge permit and to meet projected growth.
The plan has called for the expansion from the current treatment capacity of 4.23 million gallons per day (annual average) to 6 million gallons per day (annual average).
The plant was built in 1953, expanded 10 years later and received its last upgrade in 1980. The processing equipment is more than 25 years old and city officials are hoping to completely replace the existing equipment with a more modern system.
The City of Greenville, now at 26,000 people, is predicted to be a city with a population of almost 42,000 in about two decades. There is also the need to prepare for the arrival of the Cobisa plant in the next few years.
The City of Greenville applied for and was approved for a $20 million bond through the Texas Water Development Board. First Southwest Securities has provided the Council with five scenarios over what would happen to the city’s existing $29.9 million water and sewer system debt once the bonds are sold.
Depending on how much of the current bond debt the Council would decide to retire early, the total water and sewer system debt could climb to between $50 and $54 million.
Following a presentation during Tuesday’s work session, during the regular session the Council hired the firm of Vinson and Elkins as bond council for the project and First Southwest as financial advisor.