Trappe council introduces $1.141 million interim financing for sewer pumping station upgrades

Trappe Town Council on Nov. 6 introduced two ordinances to secure interim financing needed to continue a sewer pumping station upgrade after project costs increased.

President Schmidt read Ordinance 5-2024, which would authorize up to $1,141,000 in bonds to fund repairs, upgrades or replacements of sanitary sewer pumping stations and related costs. Town Attorney Lyndsey Ryan told the council the ordinance responds to additional financing the town must secure from the U.S. Department of Agriculture because project costs rose; bond counsel reviewed draft language and the council introduced the ordinance to protect the town’s interim financing position, noting Shore United’s interim loan is set to expire Dec. 5.

At the same time the council introduced Ordinance 6-2024, authorizing up to $1,141,000 in General Obligation Bond Anticipation Notes in anticipation of future bond issuance for the same pumping station project. Attorney Ryan said Ordinance 6-2024 accompanies Ordinance 5-2024 as part of the town’s financing plan.

Commissioner Jeremy Newnam moved to introduce both ordinances; the motions were seconded and carried unanimously. Public hearings for the ordinances were scheduled for Dec. 4, 2024, at 5:45 p.m.

The council did not vote to adopt the ordinances on Nov. 6; introduction places the measures on the next hearing agenda, where the public may comment and the council may adopt or amend them. The council also adopted Resolution 5-2024 at the same meeting, a separate personnel action (see related coverage).

Next steps: public hearings on Dec. 4 and subsequent council action after comment and review of bond counsel and USDA feedback.