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Council hears update on wastewater financing; central banker suggests counsel review and estimated rate
Summary
Officials discussed potential financing for a wastewater treatment plant; a bank contact suggested consulting Gilmore Bell and estimated a rate near the 10-year Treasury plus two points (about 6.5%), with a decision expected the week following the meeting.
The presiding official briefed the governing body on conversations about financing options for a planned wastewater treatment plant, including a recent call with a central bank representative.
He said the banker recommended consulting municipal bond counsel Gilmore Bell to structure any financing and cautioned that the banker was not a municipal-finance specialist. The banker suggested a potential borrowing rate around the 10-year Treasury plus two percentage points — the presiding official estimated that would be about 6.5% under current market conditions.
The presiding official said the central bank contact expected to have a clearer answer by the 9th (one week from the meeting). He also noted DA Davidson as an available financing advisor but said the firm would charge roughly $20,000–$30,000 for services that could be applied toward debt issuance costs.
No formal motion to select a financing partner was recorded; council members discussed next steps and the presiding official said staff would continue to pursue bank and counsel input before further action.
