MONROE - The City of Monroe Common Council implemented the formal paperwork Tuesday, May 7 that will start $22.5 million of the funding for upgrades to the wastewater treatment plant.
The city had $6 million on hand to contribute to the project.
According to Alan Eckstein, water utility director, the city is issuing revenue bonds through the Wisconsin Clean Water Fund Loan Program, which subsidizes the interest rate, rather than through open market securities. Liability for the loan is assumed by bond counsel Quarles and Brady, LLP.
The resolution passed 8-0, with newly appointed Ward 4 alderman Jeff Newcomer abstaining.
The bonds have an interest rate of 2.557 percent for the next 20 years, with principal payments beginning in 2015 at about $933,000 annually and increasing to $1.47 million by 2033. Repayment of the bonds is solely from revenues of the sewer utility.
The below-market interest rate is expected to save Monroe more than $2 million under the Clean Water Fund and Safe Drinking Water Loan Program. Monroe will also receive partial loan forgiveness of $500,000 of part of the programs.
Construction on the wastewater treatment plant began April 22 and is expected to be substantially completed by January 2015.
The city had $6 million on hand to contribute to the project.
According to Alan Eckstein, water utility director, the city is issuing revenue bonds through the Wisconsin Clean Water Fund Loan Program, which subsidizes the interest rate, rather than through open market securities. Liability for the loan is assumed by bond counsel Quarles and Brady, LLP.
The resolution passed 8-0, with newly appointed Ward 4 alderman Jeff Newcomer abstaining.
The bonds have an interest rate of 2.557 percent for the next 20 years, with principal payments beginning in 2015 at about $933,000 annually and increasing to $1.47 million by 2033. Repayment of the bonds is solely from revenues of the sewer utility.
The below-market interest rate is expected to save Monroe more than $2 million under the Clean Water Fund and Safe Drinking Water Loan Program. Monroe will also receive partial loan forgiveness of $500,000 of part of the programs.
Construction on the wastewater treatment plant began April 22 and is expected to be substantially completed by January 2015.