Cambridge commissioners introduced an ordinance Monday authorizing up to $6.86 million in borrowing for the rehabilitation of the city’s aging Trenton Street Sewage Pumping Station, a project officials described as essential to the reliability of Cambridge’s wastewater system.
The ordinance would authorize the city to issue general obligation bonds through the Maryland Water Infrastructure Financing Administration to fund repairs and upgrades at the station, including replacement of pumps, controls, and piping, as well as structural rehabilitation. The project is expected to support one of the city’s most critical pieces of sewer infrastructure.
City Manager Glenn Steckman told commissioners the city expects to secure an interest rate of about 1.54 percent through the state financing program.
“We are getting a very low interest rate at what we’re anticipating,” he said. “That’s far lower than we can get if we decided to issue our own bonds.”
Steckman said the city is receiving the favorable rate because Cambridge qualifies as a distressed community under the program.
According to city documents, approximately $2.5 million of the financing package would come from principal forgiveness, while the remainder would be financed through long-term borrowing.
Commissioner Shay Lewis-Sisco questioned ordinance language pledging the city’s “full faith and credit and unlimited taxing power” to repay the bonds if necessary.
“This unlimited taxing power definitely warrants me some concern,” Lewis-Sisco said. “There’s no cap to say, if the constituents, for whatever reason, the city is not being fiscally responsible, then we can avoid some level of taxes to the constituents.”
Steckman responded that the language is standard for general obligation (GO) borrowing.
“Well, that is somewhat standard language,” Steckman said. “These are GO bonds. These are not revenue bonds.”
Steckman said the city’s full credit pledge would apply to other major capital borrowing as well.
“If this were any other bond, we would still be pledging that whether we wanted to build a public safety building or do an improvement to City Hall,” Steckman said.
Commissioners also asked whether the borrowing would affect Cambridge’s bond capacity and projected, which Steckman answered affirmatively on the former, and about $65,000 a year on the latter.
The Trenton Street pumping station has become one of Cambridge’s most pressing infrastructure concerns after decades of use. The facility was built in 1938 and now handles a significant share of the city’s wastewater flow to the treatment plant.
The station rehabilitation project has also been tied to broader efforts to modernize Cambridge’s sewer infrastructure and reduce overflow risks in low-lying sections of the city.
The ordinance received its first reading Monday night. A public hearing and second reading are scheduled for June 8.
Commissioners also approved Resolution 26-05 declaring the city’s intent to reimburse a portion of project expenditures through future tax-exempt debt proceeds.
Steckman said construction is expected to begin the week of May 18.
“We have discussed having a groundbreaking,” he said.
