According to City Administrator Adam Ledford, This resolution is for the repayable portion of the Waste Water Treatment Plant loan.
Councilman Jim Frederick double checked regarding how the city would repay the loan. He seemed to favor paying back the loan with rates as opposed to bonding for the money, and wanted reassurance from Mr. Ledford that that was indeed the terms on which the Council was getting ready to vote. Mr. Ledford answered, "There is very little difference... you might remember when we originally discussed this issue... the discussion was about doing half of one and half of the other. However with the... That was before we received the [two million dollars in] grant money. Now that we've received the [two million dollars in] grant money... the difference is significantly different than what we were expecting. I think we were somewhere in the neighborhood of either no change or a very modest change to fully support the project with the loan."
During the conversation it came out that the city will spend the first couple of years paying the interest only. The reason they are doing this is because during the first couple of years they only have to pay interest on the amount that is actually spent, and the full amount will not be spent until about the third year in.
If YOU have any questions regarding this resolution, please ask. I will track down the answers for you.
Copyright (c)2007-2010 Curtis Bloes
All Rights Reserved
No comments:
Post a Comment