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Carlin council votes not to issue $4.35 million bond for water project
Summary
Council members unanimously moved to decline Resolution 2024-07 authorizing up to $4,353,000 in general-obligation bonds for the storage tank and transmission main, citing high long-term interest costs despite $1.8 million in NDEP grant reimbursements and the project being roughly 80% complete.
The Carlin City Council voted unanimously on Nov. 13 to decline Resolution 2024-07, which would have authorized general-obligation bonds in an amount not to exceed $4,353,000 to finance storage tank and transmission main water-line work. Kendra Follett of Sherman & Howard, serving as bond counsel, explained the resolution was required under IRS regulations to preserve tax-exempt status for municipal borrowing.
City Manager Richard Braithwaite told the council the storage tank and transmission line project was "approximately 80% complete" and said the city has experienced delays obtaining American-made materials as required under the Build America Act. Braithwaite also said the city had received about $1.8 million in grant reimbursements from the Nevada Division of Environmental Protection, which reduced borrowing needs. Councilmember Denise Taylor moved not to pass the resolution, saying the long-term interest burden would be excessive; Margaret Johnston seconded the motion, and the council voted unanimously to approve the motion.
