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Council adopts final financing resolution for Lake Michael dam spillway project
Summary
Mebane’s council adopted a final financing resolution authorizing up to $7.5 million in installment financing for the Lake Michael dam/spillway repair and recommended Webster Bank for loan terms (staff cited a 4.44% interest rate over 20 years pending Local Government Commission approval).
The City Council voted to adopt a final financing resolution to move forward with installment financing for the Lake Michael dam and spillway repair project.
Finance Director Daphne Schwartz summarized the financing plan: the city will use an installment financing agreement secured by the Lake Michael Park property and expects to borrow less than the $7,500,000 authorized. Staff recommended Webster Bank, citing a 4.44% interest rate over 20 years and prepayment provisions; the local government commission will consider the plan on Aug. 14 (closing contingent on LGC approval). Council moved and adopted the final financing resolution by voice vote.
Why it matters: The authorization secures a financing path to repair a critical City Park infrastructure that serves as collateral for the financing; the resolution allows staff to finalize loan documents and proceed with closing if LGC approval is obtained.
What’s next: Staff will complete loan closing steps pending LGC approval and return to council with any closing details.
