News Column

United States : TERMS for water treatment plant loan approved by Ark City

June 7, 2014

Arkansas City has approved loan terms for a new water treatment plant, clearing the way for funds to be distributed.

The city is sanctioned for $22 million from the Kansas Public Water Supply Loan Fund, repayable at 2.7-percent interest for 20 years, through the Kansas Department of Health and Environment (KDHE).

The City Commission of Arkansas City first voted 3-0 to approve a resolution amending its contract with Burns & McDonnell, Inc. for engineering services for the plant.

City manager Nick Hernandez said the resolution was needed so the city can reimburse the firm for its work under the terms of the KDHE loan.

Commissioners Chad Giles, Jean Snell and Jay Warren then heard a first reading of an ordinance and voted 3-0 to approve it, authorizing the execution of a loan agreement between the city and the state.

The ordinance in addition sets future water utility fees as a dedicated source of revenue for repayment of the loan.

Previous to executing the loan agreement, the ordinance must be published in the Traveler.

Besides, city attorney Tamara Niles must offer a form of opinion of municipality s counsel.

Hernandez said that the contract included a Buy American clause that requires all steel to be bought domestically, which could increase the plant s price tag.

Snell said, This has been in the works for 10 years .

The city will make a payment of $715,416.57 every February and August, beginning Feb. 1, 2016, and ending Aug. 1, 2035.

The final amount counting interest and service fees if not paid off early would be $28,616,662.80, according to a loan repayment schedule.The total amount of interest paid would be $5,758,947.08.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: TendersInfo (India)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters