Various paperwork was approved during a special meeting of the Gallatin Board of Aldermen Oct 17 at city hall, paving the way for major improvements for Gallatin’s water and sewer systems.
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Gallatin aldermen unanimously approved an ordinance authorizing the issuance of $3.9 million in bonds for new waterworks and sewer improvements. The ordinance (No. 1176-16) allows for 35-year revenue bonds with the USDA for $3,900,000 at 1.375% interest.
Also by unanimous vote the aldermen also entered into a 20-year equipment lease purchase agreement with Cedar Rapids Bank & Trust Co. This agreement (Ordinance No. 1177-16) is for $416,000 at 3.55% interest over a 20-year period.
Upon passage of these ordinances, Stan Wolfe representing the USDA presented loan resolutions for $3,296,000 and $604,000 to the City of Gallatin. These resolutions were formally accepted by unanimous vote of the aldermen. This provides financing for the construction of water facilities and eligible improvements.
Mr. Wolfe also presented a water and waste system grant to the City of Gallatin from USDA Rural Development for $819,490.00 to be used on the city’s new water treatment plant.
Also attending the special meeting, besides city officials, were Rick McConnell with Gilmore & Bell, P.C. and Shawna Barnes of the USDA.