Washington Evening Journal
111 North Marion Avenue
Washington, IA 52353
MT. PLEASANT — Mt. Pleasant Municipal Utilities is moving forward with its plan to build a new well on Cedar Lane to continue supplying the city with water. The new well is estimated to cost around $2 million.
To do this Mt. Pleasant Municipal utilities is teaming with the city to bond the total expense of the project. The city, with an excellent bond rating, will take out a bond for the total expense of the project and the utilities will be borrowing that money from the city.
This is due to the utilities lack of a bond rating and lack of experience with bonds, according to Jack Hedgecock the utilities manager.
The city and utilities are consulting with Piper Sandler Company to advise them on the bonding process. They have set up a special meeting of the utilities board to approve a resolution for the bonding process and to set a public hearing date for the Aug. 17 board meeting. The special meeting is on Aug. 5 at 1 p.m. in the City Hall Council Chambers.
The bond is set for 10 years at a 1.75% interest rate.
According to Hedgecock, the utility has begun to move forward with all processes surrounding the bonding process including economic development administration approval, notices to proceed and Insurance certificates.
Mt. Pleasant Utilities has bidders working on getting performance and payment bonds in place for the bond issuing.
They are set to start drilling the well this fall and should be finished drilling by February. The well should be finished by June 2022, according to Hedgecock.
In other action, Mt. Pleasant Utilities welcomed a new electric manager at the Tuesday afternoon board meeting. Matt Sermillion will be the new electric manager for the Mt. Pleasant Municipal utilities.