Title
Approval of initial resolution authorizing the issuance of water and sewer revenue and tax bonds in a par amount not to exceed $890,000 to finance water and sewer system improvements and extensions and related costs
Body
SUMMARY: City Council previously approved an application on June 11, 2015 to USDA-Rural Development for funding of the Hwy. 127N water tank for the Catoosa Department. This application has now been approved in the form of an $890,000 loan and $160,500 grant. This loan will be for 40 years with an interest rate of approximately 2.25%.
Approval was granted June 9, 2016 for the Administrative Services Agreement with Community Development Partners, who prepared the grant/loan application. Bond Counsel was also contracted with Bass Berry & Sims because they have been involved in all recent USDA grant/loans for the City. Their fee is $6,000.
The Engineering Services agreement with Stigall Engineering Associates was approved by Council in May 2015.
Property acquisition was completed September 12, 2019.
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.