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The city council approved the contract with Conrad Construction for the total bid amount of $5,419,580 in January, contingent upon being able to obtain financing.

“We bid the job to rehab the existing sewer system,� Steve Jones from water management services said. “That moves the sewer line that’s in the creek right now that goes down to the main pumping station out of the creek so that we eliminate all of that water that’s coming in there.�

During the March city council meeting, the city council approved the hiring of a financial consultant to help find funding. The mayor brought on Ashley McAnulty.

“He has calculated bonds at $5.5 million at what we believe to be a rate of around four% (interest rate) when they go into the marketplace over 25 years,� Jennings said. “I had hoped that we could do something for 40 years with United States Development Association, but we can’t do that because of their requirements.�

If the city chooses longer-term financing through capital markets, it will have to go through a bond rating process through a rating agency.

“What they would do is come and take an evaluation of the city, its finances, its management, its economic development, all of those things, those factors,� McAnulty said. “We would do a phone call with the mayor and your city recorder to go over your finances. They’d look at your prior audits. They’d look at where you are financially and then they would make a determination. Much like a credit score for an individual, they’d be doing a credit score of the city.�

That bond rating would affect the city’s interest rate for money borrowed. Watertown doesn’t have a lot of recent history in borrowing money, however, when McAnulty recently partnered with Greenbrier — which has a similar borrowing history and finances to Watertown — the city received a high rating.

“As I understand it, as a general rule, the better your bond rating, the lower your interest cost,� Jennings said.

The four% interest rate is associated with an “A� rating and would be a fixed rate that would not change over the bond timeline.

“The lines in the ground and the sewer system itself was put in in 1962,� Jennings said. “It’s 62 years old. It’s got to have some repairs. It’s got to have some maintenance to make sure the dirty water goes out.�