Council, GMSA Move Ahead on Utility Relocations
Members of the Grove City Council and Grove Municipal Services Authority unanimously agreed to direct a financial planning firm to proceed with the bid process in order to finance utility relocation along Highway 59 from Leisure Lane to Sailboat Bridge, a project estimated to cost about $6.5 million for both phases.
The Oklahoma Department of Transportation will reimburse Grove about $2 million, with the city borrowing approximately $4 million secured by sales tax revenue.
Final approval with bids is set for Sept. 20 by GMSA, which will then forward the package to the City Council for action the same day.
At a joint council-GMSA meeting Wednesday, Rick Smith of Municipal Finance Services, Inc., Edmond, presented an 18-page plan for financing water, sewer and gas line relocations and upgrades, with other needed improvements including a second water tower and 16 inch water line with three lift stations along highway 59.
The Board and Council approved a financing option involving the issuance of 15-year bank notes for net funds required. About $4 million will be borrowed by GMSA from the low bidder bank or financial institution. Annual debt service will be repaid from utility and other available revenues. Funds from ODOT, about $2 million, will go for other water and sewer system improvements on a pay-as-you-go basis. The city will also contribute about $775,000. Net costs to be financed for Phase One are $3,945,071, and $1,352,920 for Phase Two, totaling $5,297,991. Smith said an interest rate of around 4% should be available.
The loans will be secured by city sales taxes.
A similar financing project in Pawhuska brought five bidders recently, he said.
The city must have actual monies on hand in order to be reimbursed by ODOT.
Actual work on the utility project should begin in October.
The Oklahoma Department of Transportation will reimburse Grove about $2 million, with the city borrowing approximately $4 million secured by sales tax revenue.
Final approval with bids is set for Sept. 20 by GMSA, which will then forward the package to the City Council for action the same day.
At a joint council-GMSA meeting Wednesday, Rick Smith of Municipal Finance Services, Inc., Edmond, presented an 18-page plan for financing water, sewer and gas line relocations and upgrades, with other needed improvements including a second water tower and 16 inch water line with three lift stations along highway 59.
The Board and Council approved a financing option involving the issuance of 15-year bank notes for net funds required. About $4 million will be borrowed by GMSA from the low bidder bank or financial institution. Annual debt service will be repaid from utility and other available revenues. Funds from ODOT, about $2 million, will go for other water and sewer system improvements on a pay-as-you-go basis. The city will also contribute about $775,000. Net costs to be financed for Phase One are $3,945,071, and $1,352,920 for Phase Two, totaling $5,297,991. Smith said an interest rate of around 4% should be available.
The loans will be secured by city sales taxes.
A similar financing project in Pawhuska brought five bidders recently, he said.
The city must have actual monies on hand in order to be reimbursed by ODOT.
Actual work on the utility project should begin in October.
posted by Editor | 2:14 AM
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