Spring Hill sets $145m bond framework for wastewater plant

Spring Hill sets $145m bond framework for wastewater plantSpring Hill City Council unanimously approved Resolution 2026-R-24 authorising wastewater treatment facility design and construction and the issuance of general obligation bonds. The resolution preserves the city’s ability to fund project costs in advance of reimbursements from prospective WIFIA and State Revolving Fund loans.

Council approved the wastewater-treatment-facility resolution by a 5-0 vote on 8 October.

The resolution sets a $145 million amount, comprising an estimated $140 million project cost and up to $5 million for costs already incurred.

Officials said the bond authority could take the form of bonds, temporary notes or other instruments to provide project cash flow.

Spring Hill is applying for WIFIA and SRF loans, which staff said operate as reimbursement programmes.

The council also approved Amendment No. 2 to Crossland Heavy Contractors’ professional-services agreement for wastewater treatment facility design.

Spring Hill has put in place a $145 million general-obligation bond framework for its planned wastewater treatment facility, giving the city an avenue to cover project expenditures while it seeks reimbursement-based federal and state financing. The City Council approved Resolution 2026-R-24 unanimously on 8 October. The measure authorises the design and construction of the facility and the issuance of general-obligation bonds to pay associated costs. A presenter described the resolution as an early procedural step rather than a final commitment to borrow. The stated amount is $145 million: $140 million for the project cost previously discussed by the city, plus a further $5 million to preserve the option of reimbursing costs already paid. Staff said approximately $4 million had already been spent and the amount was rounded to $5 million so the city would not need to return for a smaller additional authorisation. The resolution is also intended to meet requirements governing tax-exempt financing. The city’s adviser said state law prevents issuance of bonds in excess of the amount required for a project, while the action allows Spring Hill to reimburse eligible earlier costs from tax-exempt bond proceeds under Internal Revenue Service rules. Spring Hill is applying for financing through the federal Water Infrastructure Finance and Innovation Act programme and the State Revolving Fund. According to the city’s presentation, both programmes reimburse costs after they are incurred. The city therefore expects to require cash on hand to make project payments before receiving loan proceeds. Officials said they are working with Kutak Rock, Baker Tilly, and the design and construction team to determine the timing and amount of interim cash-flow requirements. The authorised instruments could be bonds, temporary notes or other instruments. Once WIFIA or SRF funds are received, those proceeds could be used to repay the interim debt, staff said. Council members were told that future decisions remain with the governing body, including approval of the facility design, the financing documents and whether to reimburse prior expenditures. The resolution was characterised as preserving those options rather than binding the city to a final borrowing structure. In its consent agenda, the council also approved Amendment No. 2 to the professional-services agreement with Crossland Heavy Contractors for wastewater treatment facility design. Other utility-related consent actions included acceptance of a two-year maintenance bond for sanitary and storm sewer improvements at Crossings of Spring Hill Phase II, an electrical easement for the northeast sewer pump station, and permanent drainage easements for storm sewer improvements in Hidden Hills 1st Plat.