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Sewer upgrade closing delayed by missing USDA letter; council pre-approves closing form
Summary
Council learned the sewer-upgrade financing closing planned for Oct. 9 was delayed because a required USDA letter was unavailable during a federal government shutdown; the bank will keep its offer open and the council approved a form authorizing signatures to allow closing once the letter is obtained.
City staff told the council on Oct. 14 that a planned closing for sewer-upgrade financing, expected Oct. 9, was postponed because the required letter from the U.S. Department of Agriculture could not be obtained during the federal government shutdown.
A staff speaker said all loan documents and bank processes were in place and that the bank agreed to keep its offer open despite the delay. To avoid further procedural delay when USDA resumes operations, staff asked the council to approve a form documenting that each council member had discussed the issue in a public meeting and that no conflicts of interest existed; the council moved and seconded to approve the form, after which council members can provide signatures so the city can complete closing when the USDA letter is available.
"We needed one letter from the USDA and with the federal government shutdown, we were not able to get that letter," the staff speaker said, adding that the bank will keep its offer open until the letter is provided.
Staff said they had planned to finalize the closing earlier but were bringing the form to the council now so signatures could be gathered after the meeting and the transaction completed as soon as federal offices reopen. No closing occurred at the Oct. 14 meeting.
