Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Sewer Financing topic
No spam. Unsubscribe anytime.
Trappe council adopts $1.141 million bond and BAN authorizations and extends interim loan while USDA funding finalizes
Summary
On Dec. 4, the Trappe Town Council unanimously adopted Ordinances 5-2024 and 6-2024 authorizing up to $1,141,000 in bonds and bond anticipation notes to fund repairs and upgrades to sanitary sewer pumping stations, and approved a note modification to extend interim financing while USDA funding is finalized.
The Trappe Town Council on Dec. 4 adopted two ordinances and a resolution to finance repairs and upgrades to the town’s sanitary sewer pumping stations.
Ordinance 5-2024 authorizes the issuance and sale of up to $1,141,000 in bonds to pay the cost of repairing, upgrading or replacing sanitary sewer pumping stations and related public improvements. Ordinance 6-2024 authorizes up to $1,141,000 in General Obligation Bond Anticipation Notes (BANs) to provide interim financing in anticipation of future bond issuance. Both ordinances were read by President Schmidt, moved and seconded by council members, and adopted unanimously.
The council also adopted Resolution 6-2024, authorizing a Note Modification Agreement with Shore United Bank related to a General Obligation Bond and BAN funds. Town Attorney Lyndsey Ryan explained the modification extends the interim loan’s maturity by six months because U.S. Department of Agriculture financing has been approved but will not be in place before the current loan matures. Commissioner Jeremy Newnam moved adoption of the resolution; Commissioner Water Chase seconded; the resolution passed unanimously.
Separately, the council adopted Resolution 7-2024 to renew a $100,000 line-of-credit promissory note with Shore United Bank (the line currently has no balance). All votes on the financing measures were unanimous.
The ordinances and resolutions specify that proceeds will be used for sewer pumping station repairs/upgrades and related issuance costs; the council’s actions formalize the town’s plan to proceed while bridging interim financing until longer-term funding is available.
