The Lock Haven City Council meeting on June 16, 2023, focused on the approval of two significant financing notes aimed at funding city projects and managing existing debts. The council discussed a Series A note amounting to $2,000,003.24 and a Series B note of $1,326,000, which will be used for various city initiatives and to refinance previous obligations.

The Series A note is designated for city-only projects, with the city responsible for the debt service. In contrast, the Series B note involves shared financing with the Central Clinton County Water Filtration Authority and the Suburban Lock Haven Authority. This distinction is intended to streamline administrative processes for tracking payments.

Both notes will have a term of 20 years, reflecting the long-term nature of the projects they will finance. The council solicited proposals from 33 banks, receiving responses from five, which resulted in 12 proposals. Kish Bank provided the most competitive rates, offering a fixed rate of 4.27% for the first seven years on the Series A note, transitioning to a variable rate capped at 5.5%. The Series B note received a slightly lower rate of 4.23% for the same initial period.

The financing will support projects including the Wellfield Land and Easement Acquisition and the Zindel Park Bridge engineering and construction. Additionally, the Series B note will permanently finance a previous interim bond and cover contingencies from earlier phases of projects.

Importantly, there will be no budgetary impact in 2023 or 2024, as interest will be capitalized. The full budgetary impact will begin in 2025, with estimated payments of approximately $189,000 for the Series A note and $333,000 for the Series B note. The council emphasized the flexibility of these loans, which are drawdown loans and can be prepaid at any time, allowing the city to manage its finances effectively.

Overall, the meeting underscored the council's commitment to advancing city projects while maintaining fiscal responsibility.