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Council approves supplemental bond ordinance and authorizes USDA loan legal review
Summary
Westminster council approved a supplemental bond ordinance to use USDA funds for completed water-line work and authorized a legal-services agreement with Burr Foreman to complete the right-of-way review needed to close a $1,000,000 USDA loan.
Westminster’s City Council on Nov. 12 approved a supplemental bond ordinance that makes formal the city’s use of U.S. Department of Agriculture (USDA) funds for recent water-line projects and authorized a legal-services agreement to complete a required right-of-way legal review ahead of loan closing.
City Administrator Bronson told the council the ordinance cleans up language in the previously adopted bond document and explicitly references USDA Rural Development language. “This is the ordinance that allows us to use the USDA funds that we put in the water lines,” Bronson said. He also explained the USDA wants the right-of-way legal opinion before the city converts temporary financing to USDA repayment.
Bronson said Burr Foreman, the bond counsel, and Mike Burns were involved in drafting and reviewing the documents and that Burr Foreman agreed to maintain the budgeted overall legal-fee cap so the city’s previously approved $75,000 allocation for legal services remains intact. “By sticking with the $75,000 … there isn't any additional action that the USDA has to take,” Bronson said.
Council also voted to approve a legal-services contract with Burr Foreman so the firm can perform the right-of-way certification the USDA requires; Bronson said staff expects the review to be completed by mid‑December. He told the council closing would follow and said loan payments would start 60 to 90 days after closing, with an annual payment around $300,000 and the city having budgeted for the anticipated fiscal-year impact.
The ordinance and the legal-services agreement were approved on council voice votes during the meeting. The transcript records the motions and a vote, but specific roll-call tallies were not provided in the public record available here.
What happens next: staff will finalize the Burr Foreman engagement and pursue the legal review needed for USDA loan conversion; closing and first payments will follow the review’s completion.
