Fayetteville will soon be cashing

in on a big way to jump start three different large-scale projects.

Over $18.4 million in 20-year

bonds has been sold on the city's behalf, with the lion's share

going toward refurbishing the mothballed sewer plant, refinancing old

water and sewer bonds and creating a stormwater management utility.

Those funds will also pay for

construction of a new police station and courthouse at the intersection

of Jimmie Mayfield Boulevard and Bradley Drive. That project is already

well into the design phase and construction may begin in a month, officials

said.

financing, the city avoided the need for voter approval in a referendum

as would be required for other long-term financing. City officials said

this is typical, particularly since utilities are involved and money for

those bonds will come from sewer, water and stormwater fees.

Bonds issued for the new law

enforcement center totaled $4.15 million, and over the 20-year life of

the lease-purchase agreement the city will pay $346,000 annually.

Unlike the law enforcement

center bonds, the bonds for the sewer and stormwater work will be repaid

with revenues from sewer and stormwater bills. The City Council is in

the process of creating a stormwater utility which will charge $2.95 per

residence and a varying amount to businesses for projects to improve stormwater

flow in the city.

Council chose to issue the

stormwater bonds so it can have financial muscle to make improvements

quickly instead of waiting for money to collect over a period of months

before taking any action.

Already, city crews have been

working on stormwater improvements in several areas of town, specifically

those which experienced flood problems in the past year during periods

of heavy rain.

The bonds for refurbishing

the city's old sewer treatment plant will dramatically increase the

city's sewer capacity. Officials said the current plant is operating

near capacity and cannot be shut down effectively for maintenance.

After the plant is refurbished,

it will be able to treat 2.5 million gallons a day, the same amount the

current plant can treat. The city is permitted by the state to discharge

up to 3.75 million gallons a day of treated sewage into Whitewater Creek.

Fayetteville's population

is expected to almost double in the next 11 years from 13,277 this year

to 25,205 in 2014. As of September, the city had treated an average of

2.06 million gallons a day of wastewater.

Combined, the stormwater and

sewer plant refurbishment bonds total $6.726 million while the refinancing

of the 1996 issue of water and sewer bonds totaled $7.589 million.

Closing on the bond sale is

set for Jan. 7.

Back

to News Home Page |