Title
Approval of initial resolution authorizing the issuance of water and sewer revenue and tax bonds in a par amount not to exceed $419,500 to finance water and sewer system improvements and extensions and related costs
Body
SUMMARY: City Council previously approved a loan resolution to USDA-Rural Development for funding of the Hwy. 127N water tank for the Catoosa Department in the amount of $890,000. An additional $419,500 loan is necessary to build the tank. The original loan was based on engineering estimates from 2015. The bid for construction was awarded June 9, 2020.
This loan will be for 40 years with an interest rate of approximately 1.5%.
BUDGET ACCOUNT:
Recommended Action
NECESSARY COUNCIL ACTION: Approve resolution and authorize the Mayor, City Attorney, and City Clerk to sign all necessary documents and engagements relative to the grant/loan.