Baltimore to fix sewers with up to $900 mln bonds
Date: 30-Apr-02
Country: USA
Baltimore City Solicitor Thurman Zollicoffer told Reuters the city estimated it would market between $750 million and $900 million of bonds to cover the costs of the major overhaul of its antiquated sewers.
A spokesman for Mayor Martin O'Malley said about 70 percent of the city's sewers were more than 50 years old, a predicament that has left Baltimore, like many older U.S. cities, struggling to comply with modern water treatment standards.
The Justice Department and Environmental Protection Agency said last week the upgrade would end years of chronic discharges of millions of gallons of raw sewage into city streets as well as tributaries of the Chesapeake Bay.
Hundreds of sewer overflows in recent years had contaminated area waterways with untreated waste containing bacteria, pathogens and other harmful pollutants, the agencies said, putting the cost of the upgrades at $940 million.
Baltimore's Bureau of Wastewater issued $187.5 million revenue bonds last week backed by residential rates, including $118.9 million to refinance outstanding sewer bonds at lower interest rates and $68.6 million as the first chunk of funding for the upgrade.
