City of New Albany Common Council Meeting - April 6, 2026

The regular council meeting was called to order on Monday, April 6, 2026, with all council members present. The meeting included approval of minutes, council member announcements, a detailed presentation and first/second reading of Ordinance G26-02 authorizing up to $27 million in sewage works revenue bonds for infrastructure improvements, and adjournment.

Consent Calendar

• The minutes from March 19, 2026, were approved unanimously by roll call vote.

Public Comments & Testimony

• No members of the public signed up to speak on the sewer bond ordinance (G26-02).
• During non-agenda communications, a council member gave a public service announcement reminding that flushable wipes are not flushable and referenced a social media post illustrating the issue.

Council Communications

Council members shared various community updates and recognitions:

• Several members wished everyone a happy Easter and noted spring activities.
• Upcoming events included Safety Town (May 9, 23, June 13, 16), Record Store Day (April 18) with two new stores (Catch All on Bank Street and Public Records in the Fourth District), ribbon cuttings for new businesses (April 13, 17, 27), and a community listening session on traffic safety (April 14 at the library).
• New programs highlighted: life skills program at the library (Tuesdays), mobile dental clinic seeking summer hosts, Road to Re-entry for justice-involved individuals, and the "pay as you can" farm stand at New Albany High School Greenhouse.
• President Dickey announced the passing of former police officer/commissioner and merit board secretary Mike Mills and former councilwoman Shirley Baird; condolences were extended.
• Voter registration deadline for the May primary was April 6 at 11:59 p.m.; Distracted Driving Awareness Month was noted; ongoing renovations at Floyd Baptist Hill Hospital are expected to reduce noise from HVAC equipment.

Discussion Items: Ordinance G26-02 – Sewage Works Revenue Bonds

The council received a comprehensive presentation from sewer director Mike Wallace, bond counsel Bo Zeller, and financial consultant Jennifer Wilson on a proposed $27 million bond issuance to fund capital improvements to the city’s sewage works. Key elements included:

Background: The city’s sewer system experienced severe overflow issues starting in the 1970s, leading to a sewer ban in 1991 and a federal consent decree in 1993. A major storm in January 2000 caused 15 million gallons of sewage overflows. Through strategic investments (approximately $49.6 million in capacity projects and over $12.7 million in overflow abatement), the consent decree was terminated in May 2021, restoring local control. The current proposal is the first proactive master plan implementation, not a court-ordered response.

Plant Improvements (approx. $17.3M): Projects include repairing the press room and phosphorus building ($1M), replacing wet weather preliminary treatment equipment ($1.97M), replacing electrical motor control center ($780K), upgrading wet weather clarifiers and RAS/WAS pumps ($1.31M), installing oxidation ditch mixers to prevent sludge settling ($2.1M), removing the unused overflow basin for future office/lab space (~$5M for new office and lab buildings), installing a new UV disinfection system to eliminate chlorine ($1.955M), and adding security fencing and break room improvements.

Collection System Improvements (approx. $7.5M): Basin 17 parallel sewer/storage to address capacity ($2.48M), lift station condition assessment and upgrades ($1.52M), and Falling Run interceptor rehabilitation study and construction ($2.5M).

Financial Structure: The bonds are structured so that no principal payments begin until existing debt (2010, 2012, 2016 bonds) retires in 6–7 years; initial payments are interest-only. The combined revenues from the sewage works and stormwater utility provide 140% debt service coverage (minimum required 125%). The city’s current A rating is supported. No rate increase is needed. The utility has not used the CPI adjustment authorized in 2016.

Committee Vote: A motion to approve the ordinance through the committee process and move to second reading passed unanimously by roll call.

Second Reading: After no public speakers, the ordinance was introduced for second reading and passed unanimously (9-0). It will be brought forward for third reading on April 16, 2026.

Key Outcomes

• The council unanimously approved moving Ordinance G26-02 (sewage works revenue bonds) through committee and passed it on second reading by a 9-0 roll call vote. Third reading is scheduled for April 16, 2026.
• The bond issuance will not require a rate increase; the city remains in a strong financial position with no planned CPI adjustment.
• Council members emphasized that this proactive investment modernizes the system, supports economic growth, and avoids returning to federal oversight under a consent decree.