CHICAGO -- Fort Wayne, Ind. plans to issue up to $67 million of bonds to finance the takeover of a nearby water utility.
The borrowing will help settle a seven-year dispute between Fort Wayne and Aqua Indiana, a subsidiary of Aqua America Inc., which serves water and sewer customers in northeast Indiana.
Fort Wayne officials last summer said they had signed a letter of intent to purchase all of Aqua Indiana's water plants located in and near Allen County. The planned financing will also settle an ongoing lawsuit over the 2007 purchase of another Aqua facility, according to local reports.
The city in 2007 acquired Aqua's drinking-water facility through a condemnation process, paying just under $17 million for the facility. Aqua challenged the price, and the new deal calls for the city to pay an additional $50.1 million for that and the new plant. After the deal, the city will operate all drinking-water services in Allen County.
"A commitment to reliable and high-quality water at an affordable price for all residents is critical as we position ourselves as a leader in quality of life, economic development, and job growth," Mayor Tom Henry said in a statement after announcing the deal. The city will not raise water rates, Henry said.
An ordinance authorizing the deal and a $63 million bond issue is expected to be introduced April 22. A final vote is scheduled for May 13. The Indiana Utility Regulatory Commission still needs to approve the deal.
