Lakeland Board OKs $29M Bond Application
July 28, 2016 at 4:25 p.m.
By Jordan Fouts-
Board President Jim Haney said he signed the application to the Indiana Bond Bank last week but needed a vote to make it official. The board agreed in January to seek funds beyond the original $23.6 million bond they were approved for by the United States Department of Agriculture, after receiving construction bids $4 to $5 million higher than the engineer’s estimate.
The board also heard Thursday that the $2.35 million bond anticipation note with Lake City Bank, issued to fund pre-construction costs such as engineering work, is nearing its $2.5 million cap. The board approved an invoice of $51,000 Thursday and expressed fear of hitting the cap if they get a couple more bills of that size, but Haney observed that the usual monthly cost is $8,000 and that they may be looking at only $17,000 next month.
Regarding the project timeline, Haney observed that they’re about 30 days behind. The expected March 10 closing on the bond is now expected in mid-April, he said, assuming they hear back from the USDA in the next three to four weeks; and they may need to ask contractors for a 45- to 60-day extension on their construction bids, which are valid for 90 days after opening.
Haney also noted he had planned to formally introduce the rate ordinance Thursday but that has been delayed as well. He instead passed out a draft ordinance for members to look at in order to get the language settled, such as setting late charges. They won’t be able to calculate a metered rate option for campgrounds until the system is running and they have a year of data on flow rates to base it on, the board heard.
Later asked by Sechrist Lake resident John Hidy what monthly rates are now expected to be, Haney said the estimate is anywhere from $60 to $95 but will ultimately depend on the funding they secure and whether interest on the bond amount over the original $23.6 million will be at a lower rate.
Haney added, in answer to Hidy’s further questioning, that the board could make doubly sure district residents are made aware that regular monthly meetings are open to the public, especially once the rate ordinance is formally introduced and given public hearing.[[In-content Ad]]
Board President Jim Haney said he signed the application to the Indiana Bond Bank last week but needed a vote to make it official. The board agreed in January to seek funds beyond the original $23.6 million bond they were approved for by the United States Department of Agriculture, after receiving construction bids $4 to $5 million higher than the engineer’s estimate.
The board also heard Thursday that the $2.35 million bond anticipation note with Lake City Bank, issued to fund pre-construction costs such as engineering work, is nearing its $2.5 million cap. The board approved an invoice of $51,000 Thursday and expressed fear of hitting the cap if they get a couple more bills of that size, but Haney observed that the usual monthly cost is $8,000 and that they may be looking at only $17,000 next month.
Regarding the project timeline, Haney observed that they’re about 30 days behind. The expected March 10 closing on the bond is now expected in mid-April, he said, assuming they hear back from the USDA in the next three to four weeks; and they may need to ask contractors for a 45- to 60-day extension on their construction bids, which are valid for 90 days after opening.
Haney also noted he had planned to formally introduce the rate ordinance Thursday but that has been delayed as well. He instead passed out a draft ordinance for members to look at in order to get the language settled, such as setting late charges. They won’t be able to calculate a metered rate option for campgrounds until the system is running and they have a year of data on flow rates to base it on, the board heard.
Later asked by Sechrist Lake resident John Hidy what monthly rates are now expected to be, Haney said the estimate is anywhere from $60 to $95 but will ultimately depend on the funding they secure and whether interest on the bond amount over the original $23.6 million will be at a lower rate.
Haney added, in answer to Hidy’s further questioning, that the board could make doubly sure district residents are made aware that regular monthly meetings are open to the public, especially once the rate ordinance is formally introduced and given public hearing.[[In-content Ad]]
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