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Trappe council introduces $1.14 million interim financing ordinances for sewer pumping station project
Summary
The Trappe Town Council on Nov. 6 introduced two ordinances to authorize up to $1,141,000 in bonds and bond anticipation notes to fund repairs and upgrades to sanitary sewer pumping stations; public hearings are set for Dec. 4, 2024. Bond counsel and USDA reviewed draft language and interim financing with Shore United is due to expire Dec. 5.
President Schmidt read two related ordinances on Nov. 6 that would authorize the Town of Trappe to secure interim and permanent financing for repairs and upgrades to sanitary sewer pumping stations.
Attorney Lyndsey Ryan said the ordinances reflect additional funds the town must secure through the U.S. Department of Agriculture (USDA) because of increased project costs and that draft language has been reviewed by USDA and bond counsel. Bond counsel recommended the council introduce the ordinances at the Nov. 6 meeting because the town’s interim financing with Shore United is set to expire Dec. 5.
Commissioner Jeremy Newnam moved to introduce Ordinance 5-2024, which would authorize the issuance and sale of up to $1,141,000 in bonds; Commissioner Walter Chase seconded the motion and it passed unanimously. The council also introduced Ordinance 6-2024, authorizing up to $1,141,000 in general obligation bond anticipation notes in anticipation of a future bond issuance; Commissioner Newnam moved and Commissioner Michael Sullivan seconded that introduction, and it passed unanimously. Both ordinances are scheduled for public hearing on Dec. 4, 2024, at 5:45 p.m.
The ordinances, as presented to the council, state that proceeds would be used to repair, upgrade or replace sanitary sewer pumping stations and related public improvements; they also provide for the levy of annual taxes on assessable property within the town to pay principal and interest if required. The council did not vote on final adoption; the action taken was to introduce the ordinances and set public hearings.
Next steps: the council will hold public hearings on Dec. 4 and may vote on final adoption after public comment and any further review by bond counsel or USDA.
