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Hertford delays USDA loan decision after reviewing SEARCH grant items for pump and generators
Summary
Town staff reported SEARCH grant items for a cemetery pump station and nine generators now likely near $1M; First Tryon advised the town could borrow $200K if $600K in grants were secured, but council decided to hold off pursuing additional debt and continue grants in progress.
Interim Town Manager Janice McKenzie Cole told the council Nov. 14 that several infrastructure items identified in prior SEARCH grants — a new cemetery pump station and replacement of nine generators — had an earlier combined estimate of about $800,000 but now likely exceed $1 million due to inflation.
Cole said First Tryon, the town’s financial adviser, estimated Hertford could borrow $200,000 at a poverty interest rate (about 3% through Dec. 31, 2022) provided the town secured roughly $600,000 from USDA grant programs. Manager Cole noted that the town has no budgeted debt service for a new loan and asked whether council wanted her to apply to USDA and take on the debt contingent on grants.
After discussion, council reached consensus to hold off pursuing additional borrowing at this time and to continue pursuing grants already in progress. No loan application or debt authorization was approved at the Nov. 14 meeting.
Council did not adopt a formal financing plan during the meeting; Manager Cole will continue seeking grant funding and will return to council with further grant/loan options and any recommended budget adjustments if a loan becomes necessary.
