Mishawaka introduces $38m waterworks bond plan

Mishawaka introduces $38m waterworks bond planThe Mishawaka Common Council has sent a proposed waterworks revenue-bond ordinance to its Budget and Finance Committee, opening the route to finance a package of treatment, distribution and system-reliability works. The ordinance would permit up to $38 million of revenue bonds or interim bond-anticipation notes.

Proposed Ordinance 2026-34 authorises up to $38 million of waterworks revenue bonds and, if needed, bond-anticipation notes.

The listed works include gravity-filter replacement, high-service-pump and chemical-feed improvements, wellfield upgrades, new mains, booster-station improvements and technology replacements.

Debt would be repaid from net waterworks revenues and would rank alongside Mishawaka's outstanding 2018 and 2021 water revenue bonds.

The ordinance allows a final bond maturity no later than 25 years after issuance, with an interest-rate ceiling of 6%.

Mishawaka has introduced an ordinance that would authorise up to $38 million in waterworks revenue bonds to fund a broad package of water-treatment, pumping, distribution and system upgrades. The Common Council referred Proposed Ordinance 2026-34 to its Budget and Finance Committee at its September 21 meeting. The referral was a first-reading action; the council did not take final approval of the borrowing ordinance at the meeting. The proposed financing would cover additions, extensions and improvements to the municipal waterworks. The project description identifies replacement of gravity filters, high-service pumps and chemical-feed improvements, alongside wellfield, site and building works at the Virgil Water Treatment Plant. It also includes new water mains, reliability upgrades at the Division Water Treatment Plant, demolition of an unused water-storage tank, booster-station improvements, and equipment replacement and technology upgrades across the Mishawaka Utilities Water Division system. The ordinance sets a maximum project cost of $38 million, plus investment earnings on bond and bond-anticipation-note proceeds. It states that the city has no funds on hand available to apply to the project cost and would finance the works through one or more series of waterworks revenue bonds, with bond-anticipation notes available for interim financing if necessary. Under the proposed terms, the bonds would be secured by net revenues of the waterworks, defined as gross revenues including system-development charges after operating, repair and maintenance expenses. The bonds would rank on parity with the city's outstanding Waterworks Revenue Bonds of 2018 and 2021. The 2018 bonds had $9.935 million outstanding, while the 2021 bonds had $43.57 million outstanding, according to the ordinance. Any new bonds could be issued for a period ending no later than 25 years after issuance and would carry interest of no more than 6%. Bond-anticipation notes, if issued, would also carry a maximum 6% interest rate and could not extend beyond five years from their initial delivery date. The ordinance allows the city to seek financing through the Indiana Finance Authority's Drinking Water State Revolving Fund programme, as it did for its 2018 waterworks bonds. It also permits alternative financing routes, including competitive or negotiated bond sales. The proposed debt structure requires Mishawaka to maintain water rates and charges sufficient to cover waterworks operation, repair and maintenance costs and required debt-service funding. Bond proceeds would be placed in a Waterworks Construction Account and may be used only for the project, related issuance expenses or repayment of any interim notes. The Budget and Finance Committee will next consider the ordinance before it can return to the full council for further action.