Montgomery board approves water/sewer rate changes, zoning variance and $2.5M refunding bonds; tables solar ordinances

The Montgomery village board voted to approve several measures at its meeting, including changes to water and sewer billing rules, a zoning variation for a loading facility at 420 North Main Street, and authorization to issue up to $2.5 million in general obligation refunding bonds to support upcoming financing for water system upgrades.

Ordinance votes and outcomes

- Ordinance 2173 (amending Chapter 20: water and sewer rates/billing): second reading presented by Director Minnik; no changes were reported and the ordinance was approved on a voice vote (recorded as four to zero).

- Ordinance 2174 (zoning variation for off-street loading at 420 North Main Street): presented as a second reading; the board approved the variation by voice vote (recorded as four to zero).

- Ordinances 2175–2177 (related to a proposed solar project): the board voted to table these items to a future meeting because two members were absent, so the items could not be considered at this time.

- Ordinance 2178 (authorizing up to $2.5 million in refunding bonds, alternate revenue source): Director Mick introduced the ordinance as part of steps to close on a WHIF(A) loan to finance water system improvements; Anthony Melli of Spear Financial explained that the village will issue taxable general-obligation alternate-revenue bonds (pledging sales and utility taxes for coverage) as an interim step, take bank bids the next day and, if market conditions allow, later convert to tax-exempt bonds for savings. Melli said the plan called for selecting a bidder and closing the new bonds on May 12; the board approved the ordinance on a voice vote (recorded as four to zero).

What the board heard

Anthony Melli described the financial rationale: the village needs to meet debt-service coverage covenants for the new loan, and refunding the 2017 bonds with a short-call taxable issuance tied to village revenue streams is an interim solution to ensure required coverage. Melli said previously refinanced 2013 bonds were handled in an earlier financing and the village had been holding off on the 2017 refunding until closer to the loan closing.

Procedural notes

- Several roll-call vote lines were read aloud with trustees indicating "yes," and the board recorded multiple approvals as carrying "four to zero." The minutes show votes called by trustees during each motion.

- The board noted the solar package (ordinances 2175–2177) will be placed on the next available agenda for full consideration when more members are present.

Next steps

- Staff said they will solicit remaining bids and select the lowest rate; the transcript records a planned bond closing date of May 12.

- The solar project ordinances will return on a future agenda when a full board can consider them.