Rhea County Councilman Bill GrahamDAYTON, Tenn. – Dayton City Council members have taken the first formal steps to expand the city’s water treatment plant, authorizing the city manager to prepare a resolution for a bond issue.
The council was advised nearly a year ago that the water plant is nearing its production capacity of 4 million gallons per day and that it will be required to expand production to meet state guidelines.
City Manager Frank Welch said the city’s consulting engineer, J.R. Wauford, has investigated ways to finance the project, which is expected to cost some $17 million, including improvements to its distribution network. Wauford recommended a bond issue instead of $2 million from a state loan pool plus a bond issue because of the extra administrative costs attached to a loan.
“Right now, the [bond] market is good, and there are a lot of contractors who do this kind of work looking for work,” Welch said.
The council members instructed Welch to contact the Morgan Keegan investment firm to prepare the necessary resolution to begin the process of securing bonds to finance the project.