Newton to seek $1.78 million in financing; public hearing set for Jan. 5

The Newton City Council on Nov. 24 unanimously authorized staff to apply to the North Carolina Local Government Commission for financing and scheduled a public hearing for Jan. 5, 2021.

Finance Director Vickie Thomas said the city planned to borrow an estimated $1,780,600 to finance multiple capital needs identified in the FY2021 budget. She listed the principal estimated projects: General Fund work to replace a culvert on West 24th Street ($225,500); Water & Wastewater Fund projects including North Shipp Avenue water line rehabilitation ($346,100) and replacement of Flygt pumps at the Westside Pump Station ($117,000), totaling $463,100; and Electric Fund projects including Distribution Automation phases 1 and 2 ($184,050 and $449,950) and replacement/reconductoring of underground copper cable ($458,000), totaling $1,092,000. The combined estimated total staff intends to finance is $1,780,600.

Thomas said staff will solicit quotes from financial institutions and return with a recommendation to award financing on Jan. 5, 2021. Council Member Jerry Hodge moved to adopt a resolution authorizing the city manager and the finance director to file the application; Anne Wepner seconded. The resolution passed unanimously. Council then unanimously adopted a resolution calling for a public hearing on Jan. 5 to consider the financing.

The application process notifies the Local Government Commission and begins the formal procurement of financing; Thomas told council staff will present financing options and a recommendation at the Jan. 5 meeting.