Brighton Council approves remaining $85M in bonds to complete water treatment facility

BRIGHTON — The Brighton City Council on Tuesday authorized another large chunk of money to complete its water treatment expansion project.

The council voted 6-1 —  with two members absent and council member Matt Johnston voting against —  to approve floating another $85 million in bonds for the now $175-million-plus project, which will give the city another 25 years of operation. The project, starting its fourth year of construction, doubles the plant’s capacity to 20 million gallons of water treatment per day, giving it new life until 2045. The council voted without discussion at both readings of the ordinance in January and Tuesday, Feb. 4.

When it began in 2022, the city reported the existing water treatment plant was 25 years old and nearing the end of its useful life, and that it didn’t have the capacity to meet the growing city’s needs.  

To move the project along, the city council voted in 2022 to pass a 9.1% increase in water rates, in addition to floating $80 million in bonds. The following year, the city began a $6-a-month water treatment plant fee for single-family homes. The city had always planned for a second set of bonds, given the length of the project, said Catrina Asher, finance director for the city.

When the project was first considered, the expected cost was $155 million. With the second round of bonding, the city will be up to $165 million in bonds alone.

The city also has received $10.4 million in American Rescue Plan Act funding, and  it uses reserves and other grants to fund the expansion, according to city documents.

Asher reported to the council in January that the city has earned $5.9 million in interest from the 2022 bonds, which will be pumped back into the project. Asher said the city had already spent $68 million of the original bond amount, prompting the second bonding request.

“Meanwhile, staff is working on a number of projects to support this, with rating agency calls, we’re also working on a preliminary official statement, a 200-page document that talks about the project, how the city is growing, and all the reasons we want investors to invest in us,” Asher told the Council in January. “We are targeting a competitive bond sale on Feb. 19.” Funding is expected on Feb. 27.

The city will have three years to use the $85 million in bonds, but the project is expected to be completed by the end of this year.

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