(KNZA)--The Hiawatha City Commission, in a special meeting Wednesday afternoon, approved bond financing for two projects—replacement of the city's water meters and the traffic signals at 1st and Oregon.

The Commission voted to set the cost of the project bonds at $1,091,248, and authorized the city administrator and mayor to sign the necessary documents.

The bonds are to be paid off over a 20-year period.

The Commission accepted a bid proposal Monday evening for the purchase new water meters at a cost of nearly $671,000.

City Administrator Brad Scott said the annual payment for the water meters will be around $55,000.

He said plans are to retire two outstanding bonds, which should free up $56,000. That means a water rate increase will not be needed to fund the bond payment.

Scott said the annual payment for the traffic signals will be around $25,000 per year. He said the excess proceeds would go to help the street fund.

Bid letting for the traffic signal project is to take place this spring.