City to raise $7.5M in bond sale | News
CUMBERLAND — City officials are seeking to raise $7.5 million on the bond market for a variety of upgrades, including installation of a $3 million solar power system.
The request for funding was made at last week’s regular meeting of the Cumberland mayor and City Council.
Jeffery Silka, city administrator, said the city wants to “issue and sell general obligation bonds and anticipation notes on the financial market to raise funding to finance costs of certain projects.”
Silka said $3 million of the funding will be used to purchase a solar power system.
Government entities often utilize the national municipal bond market to raise funding to meet their needs.
Cumberland Mayor Ray Morriss said the solar panels will be installed on the grounds of the city’s wastewater treatment plant known as the John J. DiFonzo Water Reclamation Facility, 105 E. Offut St.
According to Silka, “The solar panels are for power generation at the building and it will let us sell power back to the electric company, which will help in paying off the bonds as well.”
Morriss said ground for the solar project will be broken in 2026.
The remainder of the funding, according to Silka, will be used on a variety of needs.
“The other $4 million or so is kind of our annual capital debt offering where we can fund the purchase of trucks and vehicles used in road work and possibly an ambulance.”
Silka said capital upgrades such as vehicles and equipment can reach $2 to $3 million a year.
“We couldn’t afford to just pay for those things from our general fund budget,” Silka said. “Just like people do at home when they finance a car for a few years; that’s how we do these large projects.
“As long as we do our debt policy reasonably, it’s a great way to extend our financing and give us access to more money.”
