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Council approves Davenport Public Finance contract to advise on Kerr Lake financing; fees estimated $50,000–$70,000
Summary
The council approved a contract with Davenport Public Finance to provide underwriting/financial advisory services for the Kerr Lake Regional Water System upgrade; staff said Davenport's fee is $50,000 for installment financing or $70,000 if revenue bonds are used, with work charged only if financing is required.
Henderson City Council approved a contract on Oct. 10 with Davenport Public Finance to provide underwriting and financial advisory services for the Kerr Lake Regional Water System upgrade and expansion.
City Manager Edward T. Blackmon said First Bank required the City to engage an underwriter as part of the financing structure. Blackmon told council Davenport was selected for its familiarity with the project and partners; he said Davenport’s fee would be $50,000 for installment financing or $70,000 if revenue bonds are used and that Davenport would charge only for work performed if additional grant funds obviate financing.
Council members asked what services were covered by the fee and whether staff could perform the work; Mr. Blackmon said Davenport would provide debt‑repayment projections and advisory services. Council Member Garry D. Daeke asked whether the underwriting requirement was a known cost; staff responded the fee structure is tied to financing options. Manager Blackmon said funds for the agreement will come from the KLRW Reserve Fund.
The resolution authorizing the contract passed unanimously among voting members present.
