Trappe adopts bond and note authorizations and extends interim loan for sewer projects

The Trappe Town Council adopted two ordinances authorizing debt instruments to finance sanitary sewer pumping-station repairs and related projects and approved resolutions addressing interim financing.

Ordinance 5-2024 authorizes the issuance and sale of up to $1,141,000 in bonds to pay costs of repairing, upgrading or replacing sanitary sewer pumping stations and other public improvements; the ordinance was presented, had no public comment at its hearing, and was adopted unanimously. "An Ordinance of the Town of Trappe ... providing for the issuance and sale of up to (and including) One Million One Hundred Forty-One Thousand Dollars ($1,141,000) par amount of bonds" appears in the minutes.

Ordinance 6-2024 authorizes the issuance and sale of up to $1,141,000 in General Obligation Bond Anticipation Notes for the same projects; the council adopted that ordinance unanimously as well. The council also adopted Resolution 6-2024 to authorize a Note Modification Agreement with Shore United Bank related to a General Obligation Bond (principal $1,376,000) and a General Obligation Grant of $599,500 (of which $435,121.71 has been drawn). Town Attorney Lyndsey Ryan explained the need to extend the interim loan maturity for six months because USDA funding, while approved, was not yet in place: "this is to extend the maturity date for 6 months for the interim financing for the pumping station project as the current loan matures tomorrow and while the USDA funding is approved, it is not in place before this maturity date." The council also adopted Resolution 7-2024 to renew a $100,000 line of credit with Shore United Bank; the minutes note that the line currently carries no balance.

All measures were adopted by unanimous vote; the minutes record motions by Commissioner Jeremy Newnam to adopt the bond and BAN ordinances and Commissioner Jeremy Newnam and Commissioner Rose Potter as movers/seconders on related resolutions.