Indian Hills approves $2 million bond issue

Indian Hills could be getting water and sewer system improvements, after a $2 million bond issue was approved by the Indian Hills General Improvement District Board of Trustees on Wednesday.

The amount was $200,000 over the $1.8 million amount agendized for the meeting.

Douglas County's debt management committee will have to meet and approve the bond, then it must come back to the Indian Hills Board of Trustees for approval, said bond consultant Marty Johnson.

"This resolution starts the process for issuing the bonds," he said. "It will come back to the board for approval of another resolution."

This general obligation bond, would be repaid through pledged revenues from sewer and water utilities, the maximum payment about $6 per customer, per month.

The payment would not start until the money is spent, according to Indian Hills General Manager Dennis Longhofer. He said several projects need to be done, including installation of an emergency power system for a well and the water treatment plant.

"The emergency power system in place for the water treatment plant won't handle the new arsenic removal system," he said. "We also need to put in a new lift station and line a sludge pond by August, or abandon it."

The following is a list of the estimated costs for the projects:

n Hobo lift station - $700,000

n Emergency power system for wastewater treatment plant - $72,000

n Sludge dewatering equipment and building - $350,000

n Emergency power system for water treatment plant - $162,000

n Arsenic system improvements - $410,000

n Emergency power for Brown's well - $72,000

"With this bond issue if we don't need the money, we don't use it," Longhofer said. "Any money taken out for the project will be used for the project only."

The financing should be in place by the summer of 2007, Longhofer said.

"This is the direction we need to go," he said.

The vote was split 3-1 on this issue. Laura Lau, Brian Patrick and Art Baer voting in support and Chairman Riley Evans in opposition.

"This is hard for a guy who started out in this world working for $1 an hour," Evans said. "Six dollars doesn't sound like a lot, but I talked to a lady in Sunridge who makes just $17,000 a year."

"It will be two to three years, before the payment gets that high," Longhofer said.

Board Chairman Chuck Swanson did not attend Wednesday's meeting.

n Susie Vasquez can be reached at svasquez@recordcourier.com or 782-5121, ext. 211.