(KLZA)-- The Falls City Council passed an ordinance on first reading Monday night authorizing the issuance of combined utility revenue bonds in an aggregate principal amount not to exceed $20 million. The funds will be used for the Energy Forward Project, which would increase the amount of electrical power coming to Falls City from an outside source.

The City has received a $15 million grant from the Nebraska Department of Economic Development which requires a dollar-for-dollar match. Until the engineering phase is completed the exact cost of the project is not known. Studies have indicated the total project cost will range from $30 - $40 million with a 15% contingency plan.

If the transmission line project comes in at a lower cost no further action will be required. If the cost is more than the $35 million the grant and bonds would cover, the city would need to deal with the gap.

The plan calls for a bond issuance over a three year period. The amounts are to be $7.3 million in both 2026 and 2027 and $6.3 million in 2028.

City Administrator Anthony Nussbaum report to the Council projected that

delaying or forgoing the improvements will keep the community at a competitive disadvantage, and the project represents an investment in infrastructure, in addition to being a critical step toward securing Falls City's economic and energy future.

Currently the City would not have enough electrical capacity to provide power for a large industry.