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WEIRTON -- Weirton Council took the first steps, Monday, in approving a series of revenue bonds to provide the final financing toward the planned expansion of the city's water treatment plant.
Council voted unanimously, 7-0, on the first reading of an ordinance authorizing the issuance of "not more than $12,000,000 in original aggregate principal amounts of water revenue bonds," as part of the agenda during its regular meeting Monday.
"This will be the issuing of the bonds for the treatment plant," Ward 3 Councilman Fred Marsh explained.
No other comments were offered by council prior to the vote.
The Weirton Area Water Board is finalizing its plans to seek bids on construction of the water treatment plant project, which would expand the capacity of the city's current plant from 4 million gallons of water per day to 8 million gallons per day.
During the departmental reports held later in the meeting, Utilities Director Butch Mastrantoni reminded council a task force had been formed six years ago to begin discussions on potential expansion designs, thanking council for its support throughout the process.
"I think we've turned to page two on the city's infrastructure," Mastrantoni said, referring to Monday's vote.
While council previously approved a two-stage rate increase to assist with the costs of the project, the Weirton Area Water Board has been awarded $24.4 million in Congressionally Directed Spending, which will be administered through the Environmental Protection Agency, as well as $5.6 million from the Office of West Virginia Governor Jim Justice, using American Rescue Plan Act funds, to be used as a local match to the federal funds.
"Those two numbers combined constitute 83 percent of the total construction dollars for the project," Mastrantoni noted, explaining the community will be responsible for the remaining 17 percent.
While neither the Congressionally Directed Spending, nor the allotment from the Governor's Office, need to be repaid, the Water Board had been awarded $5.65 million the West Virginia Infrastructure and Jobs Development Council, in the form of a loan. Much of those funds were used to cover design costs for the project.
Council still has actions to take before the revenue bonds can be finalized, including additional readings of the ordinance and a public hearing.
"This is the first of three votes that will set in place the reality," he said.
Previous estimates had the project with a cost of $26,850,000; however, officials noted various materials have increased in cost, and a final expense will not be known until the project's bid package has been awarded.