MILFORD - Representatives of Barnes & Thornburg, Indianapolis, and H.J. Umbaugh & Associates, Plymouth, presented an overview of where Milford's new water and sewer treatment plant stands currently Monday to the town council.

Jerimi Ullom, of Barnes & Thornburg, told the council about the legal steps needed to issue revenue bonds to fund the project. The bond ordinance the council will need to approve will be a "good size" ordinance, he said, and it sets the terms and conditions of the bonding and gives authorization for bonding. The bond ordinance sets the maximum perimeters.

Another ordinance the council will need to approve is the rate ordinance which will require a public hearing. The bond ordinance doesn't require a public hearing but allows for a remonstration period.

As early as July, Ullom said they may be able to sell the bonds. Plans from the engineers for the project have been submitted to the Indiana Department of Environmental Management.

"The bonds and the rates don't have to follow the same timing," said Ullom.

Councilman Douglas Ruch asked if the town would be better off if they paid more up front on the project. Ullom said that won't affect the interest rate and there is a possibility an early payment of the bonds could result in a financial penalty, depending on who the bond buyer is.

Steve Carter, of Umbaugh & Associates, said Milford's cash balance has steadily risen over the years and that is healthy. The town doesn't have debt, which is a good position to be in, and the town has a cash balance of $615,000. Funding for the new plant will include $350,000 from reserves, approximately $160,000 from the Economic Development Income Tax and the balance will come from bond issuing.

The good news, Carter said, is that current operations are sufficient to pay for the plant the town has now. But, the monthly rate on a typical household that uses 5,000 gallons will increase by $5-$6.40 additional to the current rate of $20.40 for the new plant. However, Carter said that is still under the average for rates for communities of Milford's size.

Town Attorney Jay Rigdon said the estimated total cost for the project is $1.85 million but only $1.15 million is out of revenue bonds.

"That's very rare," said Ullom. "You should be very pleased about that."

Rigdon said the town will have an average rate below the median for a town of Milford's size and that is very attractive to new companies coming in because they will want infrastructure with power, water and sewer support.

In other business, the town council:

• Approved the resolution authorizing a tax levy increase for the Kosciusko County Solid Waste Management District to the rate of $0.0035 for 2002, payable 2003. The tax increase will generate an additional $80,000 for the district if all the town councils and the county council approve it.

• Approved up to $1,700 for the police department to transfer old equipment from the old police car to the new car and for purchase of new equipment. The bid was from R&B Sales Service Center, Pierceton.

• Approved the police department to get vests and long guns from the Department of Justice as long as the only expense that occurs is shipping and shipping is reasonable. A total of up to 12 weapons will be received, according to town marshall Dave Hobbs.

• Approved a bid of $489.20 from Super Seal to restripe Main Street.

• Heard the EMS will have a chicken and noodle supper April 26 at the community building from 4:30 to 7 p.m. The cost is a donation.

• Heard town clean up will be in the fall, sometime in September.

Brush pick up is every Monday. Everything should be bagged or boxed except brush which needs to be small enough for one man to handle.

• Heard the town hall will be closed Friday for Good Friday.

Council members present included chairman John Lehman and Douglas Ruch. Absent was Robert Phillips. The board meets at 7 p.m. in the town hall on the second Monday of every month. [[In-content Ad]]