The Eagle Point City Council has approved $2.5 million in water revenue bonds to finance the construction of a 1.6-million-gallon tank in the southern part of the city to replace one an eighth that size, along with other work.

The Eagle Point City Council has approved $2.5 million in water revenue bonds to finance the construction of a 1.6-million-gallon tank in the southern part of the city to replace one an eighth that size, along with other work.

No new taxes will be levied to pay for the bonds, although the city will look at raising water rates to cover operating costs and debt service.

"We have some water issue things that need to be done," said Mayor Bob Russell. "It's just a vehicle that will commit us to finance things."

No one spoke in opposition to the city seeking a loan from the U.S. Department of Agriculture Rural Development Program that would be repaid by the bonds, said Russell. The council unanimously approved the action on Tuesday.

Revisions last year by Civil West Engineering Services, Coos Bay, to the city's Water Master Plan prompted the action. A 20-year plan with three phases was developed, with the tank and pump station work being undertaken in the initial, five-year phase. The plan considers how much water will be needed now and as the city grows.

"They have needs immediately in the area of storage and future needs if they grow as estimated," said Garrett Pallo, president of Civil West.

Reservoir location has yet to be determined, although the choices are down to two sites, said Pallo. In addition, the city will relocate and update its Bellerive pump station and add backup power to a second station on Highway 62.

Civil West will provide detailed engineering work for the projects once loan proceeds are available. Finance Director Melissa Owens said it will take 60 days to get the loan approved. Civil West completed preliminary design work on the tank and system for the plan. Pallo didn't anticipate any of the physical work being undertaken this year.

— Tony Boom

Read more in Saturday's Mail Tribune.