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January 6, 2011

City weighing Duck River financing options

By Trent Moore The Cullman Times

Though Cullman officials know they will need between $60-70 million to build the proposed Duck River Dam — exactly how they will go about borrowing that money has yet to be decided.

The Cullman Utilities Board discussed financing for the secondary water source project at a meeting on Jan. 4, though no course of action has been approved.

Essentially, the board is faced with two options: a bond for the full cost of the project can be taken out at the beginning, or the project can be funded by two or three smaller bonds throughout the course of construction.

The project encompasses the creation of a 640-acre lake and a six-mile pipeline with a 32-million-gallon-per-day capacity. The reservoir and dam will be located east of Lake Catoma, currently the areas only water source, in the northeast portion of Cullman County.

With the utilities board still pursuing all options for federal assistance to fund the project, Cullman Mayor Max Townson wondered if taking all of the money out up-front might hurt the city’s chances from a perception standpoint.

“It’s a financial decision, and what we’re trying to do is make sure we don’t slam the door on any federal stimulus money,” he said. “I think if we borrow $60 million, then ask for $20 million, they may ask why we need it, since we’ve already borrowed it all. We just need to be careful not to slam the door on any potential funding.”

Read the complete story in the Thursday, Jan. 6, 2011 edition of The Cullman Times.

*Trent Moore can be reached by e-mail at trentm@cullmantimes.com, or by telephone at 734-2131, ext. 220.

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