The Cottonwood Shores City Council approved issuing $1.5 million in certificates of obligation to help upgrade water lines, which will benefit current residents and future development.
During the Nov. 5 meeting, councilors voted to take on the debt to upgrade water lines for residents on the north side of the city as well as extend lines to a number of undeveloped lots.
“We have many lots, hundreds of lots that have no water or sewer,” Mayor Donald Orr said. “Both builders and developers are trying to find lots or are looking to buy lots.”
When developers discover they are responsible for putting in water and sewer lines, they look elsewhere, the mayor added.
Orr believes if the city installs the utilities, developers will commit to building in Cottonwood Shores.
Current residents suffering from low water pressure will also benefit, Orr said.
The city has a number of houses on the north side that have 2- and 2 1/2-inch water lines. The city plans to add 6-inch main lines in that area to help increase water flow to those residents.
The certificates of obligation are for 15 years at less than 2.5 percent interest.
“That’s good,” the mayor said of the rate. “That’s why we wanted to take advantage of it. It does add to our debt service. We’re taking advantage of being able to add infrastructure and, for the most part, pay for it with growth. It enhances the daily lives of our residents. It does all the things we’d like to do.”