Continuously serving Kosciusko County since 1854
PIERCETON - Council members on Monday approved an ordinance to refinance the bond issue for the water works. At the same time, the council agreed to raise water rates by 15 percent.
By refinancing the bond issue, the town will save about $75,000 because of lower interest rates than the town received when the previous bonds were sold in 1988.
The existing bond issue is for the water works loan and, according to town attorney Jim Walmer, it would be difficult to sell a new bond without proving that the utility is fiscally sound. A rate increase is necessary to provide that proof.
The bond ordinance was adopted Monday after the council voted to suspend rules and pass it on its first introduction and after its second reading.
The rate ordinance is expected to be approved at the December meeting, after it is advertised and posted. A public hearing will be the first order of business when the council convenes at 7:30 p.m. Dec. 8 in the community building.
