The City of Newton’s Water Distribution system is going to be upgraded through the use of a $2,529,000 Water Revenue Note. Newton City Council members last night unanimously approved a loan agreement with Bank Iowa of Newton. The bank is issuing the City the Water Revenue Bonds at 5% interest for just under 14 years. Newton Mayor Evelyn George says the money will pay for various equipment and projects directly related to the operation of the Water Department. 

“Water meters, pump station equipment, wells, water treatment plant improvements, and water lines.”

Newton City Administrator Matt Muckler says those are the most pressing capital needs in the city’s water system. He also notes only water department revenue will pay off the loan.

“So in other words…the bills people pay for water. That money can go to pay that loan back. No property tax dollars or any other City revenue will be used to pay off that loan.”

The City of Newton expects to receive the $2,529,000 from Bank Iowa on Wednesday, December 18th. The first annual principal and interest payment is due on June 1 of next year, while the final payment comes due June 1st of 2038.

The City of Newton also has some outstanding debt left from $784,000 in Taxable Water Revenue Capital Loan Notes issued in February of 2020.