S&WB: Bond sale would help fund critical drainage and sewerage improvements
For Immediate Release: Thursday, February 22, 2018 11:20 AM
New Orleans - The Sewerage & Water Board (S&WB) Board of Directors voted Wednesday, Feb. 21, to support issuing $114 million in bonds to finance critical improvements to New Orleans' drainage and sewerage systems.
The bond sales are expected to raise $27 million for projects to maintain New Orleans' vital drainage system, and another $87 million to improve the sewerage system and help protect the health and safety of city residents.
The drainage bonds are backed by revenue generated from a property millage approved by voters in 1981. Some of the projects funded with this revenue are repairs to the Broad Underpass Draining Pumping Station, repairs to the Filter Backwash Facility, repairs to discharge tubes, SELA project management, the installation of permanent generators, and other emergency repairs to drainage and constant duty pumps.
The sewerage system bonds would be supported through revenue generated by service rates charged to customers. This would help fund numerous projects such as sewer rehabilitation, pump station repairs, the purchase of radio equipment, meter boxes, and security hardware, the acquisition of property for new construction, the replacement of existing fuel access systems, the design and construction of a new Westbank maintenance facility, and many other projects. These projects will take place all across New Orleans from the Westbank, to the Lower 9th Ward, to Lakeview, to Mid-City, to New Orleans East, to Uptown.
With its vote, the Board of Directors has asked the Board of Liquidation and the City Council to approve the bond issuance. The matter must also go before the State Bond Commission. A tentative schedule of the process can be found below.
A breakdown of the infrastructure projects these bonds would help fund is attached.
Board of Liquidation, City Debt (BOL) Schedule of Sale
February 15, 2018 SWB Finance Committee meeting
February 21, 2018 SWB consider adoption of preliminary resolution (include; apply to
SBC; request Council approval (include reimbursement)
March 21, 2018 BOL adopt resolution providing for negotiated sale (include
reimbursement); applying to SBC; seeking Council approval
April 4, 2018 Council preliminary approval
April 18, 2018 BOL appoints underwriters
May 16, 2018 SWB adopt Basic Bond Resolution
May 17, 2018 SBC approve bonds (April 18th submission deadline)
June 6, 2018 Council approve Basic Bond Resolution
June 13, 2018 BOL adopt sale resolution
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