Millville's sewer system: $15.9 million in sewer bonds, $9.3 million in grants and the payments now starting

Most of Millville's debt is tied to its water and sewer system, and the audit's schedule and the city's budget show scheduled sewer payments rising. ^[1][2][7]

The bonds

At June 30, 2025, the city's water and sewer fund owed $17,665,615 on five revenue bonds, according to the audit's debt note. ^[1]

The largest is a $9,720,000 sewer revenue bond issued Aug. 28, 2023, with $9,406,947 outstanding, payable in monthly installments of $28,188 at 1.75% interest until Aug. 28, 2063. The audit lists the same $9,406,947 as the outstanding balance of a federal loan under the USDA's Water and Waste Disposal for Rural Communities program. ^[1][3]

A $5,200,000 sewer bond issued in 2022 is non-interest bearing, with annual installments of $20,000 to $256,000 starting in November 2026 and running to Nov. 1, 2055. A $1,261,000 sewer bond issued in 2024 is also non-interest bearing, with annual installments of $42,033 starting in September 2026 and running to Sept. 1, 2055. ^[1]

Two water bonds, from 2006 and 2022, had $588,000 and $1,209,668 outstanding. ^[1]

The audit's payment schedule shows $475,000 in principal and interest for fiscal 2026, rising to $537,000 in fiscal 2027 and $560,000 in fiscal 2030, with $21,641,081 due in total. It says the fiscal 2026 amount equals 42% of water and sewer services revenues and that the bonds were issued for improvements to the city's water system "and Nibley City's sewer system." ^[2]

Grants

The water and sewer fund recorded $9,301,724 in grants in fiscal 2025 against a budget of $9,700,000, and $9,344,893 in capital outlay. ^[4]

The schedule of federal awards lists $7,952,795 in expenditures under the USDA program, a schedule the audit says includes the value of new loans made during the year. At year end, the city listed $1,937,659 due from a Division of Water Quality grant. ^[3][6]

The June 11, 2026 budget tables list $5,356,800 in sewer grant proceeds for fiscal 2026 and none for fiscal 2027. ^[7]

Payments in the new budget

The fiscal 2027 expense table lists $338,300 for the "USDA Sewer Rev Bond" and a new $63,000 "DEQ Sewer Loan Debt Payment," which was $0 in fiscal 2026. ^[7]

The minutes record Recorder Corey Twedt saying that "water and sewer impact fees are currently going directly to pay down debt in those funds." The audit separately reports that costs exceeded impact fees collected by $2,249,399 for water and $1,296,326 for sewer. ^[7][8]

The audit's supplemental schedule says each connection is charged $60 a month for sewer main debt service. It lists 729 residential and 9 commercial water and sewer fund user connections as of June 30, 2025. ^[5]

Equipment

The minutes say the fiscal 2027 Capital Projects Fund budget includes money for a backhoe, a lawn mower and a sewer lateral camera system. Twedt said he planned to wait on those purchases to see whether the backhoe and camera could come from remaining sewer grant money and, if not, to use saved funds. ^[7]

The system in operation

Draft minutes of the Dec. 11, 2025 council meeting say approximately ten homes were then connected to the sewer system. ^[10]

At the Sept. 10, 2026 meeting, Director Kendrick reported that the sewer lift station had generated its first alarm during a power interruption, that inspection found no failed bearing or other equipment damage, and that the station remained under warranty and was operating properly. He said residents continue to connect, and the recorder said he would provide an updated connection count. ^[9]