Evesham MUA pivots to IBank funding as 2019 revenue bond runs dry

Evesham MUA pivots to IBank funding as 2019 revenue bond runs dryThe New Jersey authority is advancing a slate of water and wastewater upgrades, including critical headworks replacement and well redevelopments, while navigating a shift in financing sources.

The Authority's 2019 revenue bond is exhausted, prompting a shift to IBank funding for immediate needs like the Woodstream headworks.

A future revenue bond is being planned to cover a "multitude" of long-term improvement projects.

Chemical procurement costs dropped 20% overall in the latest bid, driven by a 37% decrease in ferrous sulfate.

Critical upgrades include the "hanging by a thread" Woodstream headworks and safety-focused lift station rehabilitations.

The Evesham Municipal Utilities Authority (EMUA) is transitioning its financing strategy for capital improvements following the exhaustion of its 2019 revenue bond. During the February 4 meeting, the Executive Director confirmed that the authority will petition the New Jersey Infrastructure Bank (IBank) for immediate funding needs while preparing a broader capital budget plan. "Our 2019 revenue bond has been exhausted," the Executive Director told the board. "For the time being, we'll be petitioning the IBank for funding." He noted that the IBank offers favorable terms, including low interest and up to 50% principal forgiveness for approved projects. The state financing program, a partnership with the Department of Environmental Protection, has significantly ramped up support for wastewater infrastructure, funding 116 clean water projects totaling $838 million in fiscal year 2024 alone. Despite this available capital, the authority anticipates eventually returning to the bond market. "At some point... [we will] likely go out for another revenue bond on a multitude of projects," the Director added. A primary target for the new funding is the Woodstream wastewater treatment plant headworks project. The Executive Director described the current headworks infrastructure as "literally hanging by a thread," noting that while a recent $10,000 investment in a new gearbox is keeping the system running, full replacement is urgent. The authority is currently waiting on the IBank funding process, which can take up to six months. The authority is also advancing a significant slate of water infrastructure projects. Work on the Well No. 8 replacement is imminent, with a pre-construction meeting scheduled with contractor Unitek to commence Phase 1 drilling. Additionally, redevelopment work at Well No. 5 has seen pumps installed and is undergoing testing. The authority is also preparing to bid out the King's Grant Drive water main replacement later in February. On the wastewater side, the authority continues to upgrade lift stations, including the Cinelli Farm and Pine Grove facilities. A key driver for these upgrades is safety; the designs aim to move equipment above ground to eliminate the need for staff to enter confined spaces at depths of over 30 feet. Operational costs provided a bright spot during the meeting. The Consulting Engineer reported that re-bid contracts for chemicals yielded significant savings. While liquid alum sulfate costs rose slightly by 4%, ferrous sulfate dropped by 37%. "Overall, your chemicals for the year... are 20% lower on costs than the previous year," the Engineer stated. Regulatory challenges remain at the Woodstream facility, which was cited for a nitrate violation in May. The Executive Director reported that the state denied the authority's affirmative defense, though no fine has been levied yet. To address this, the authority is mobilizing a contractor to install a "WATEX" floatable membrane system for nitrate removal.