2016-12-22 / Front Page

Council approves interest rate terms for plant expansion

At a called meeting last Thursday, the Lincolnton City Council voted to accept the terms of an additional USDA rural development loan for $934,000 for the wastewater treatment plant expansion project. By accepting the terms, an interest rate of 1.375 percent was also secured before an expected interest rate hike upon the new year.

USDA area director Kathy Ross additionally provided a brief synopsis, stating that “we’ll be working with bond council as well as your local attorney to have the draft bond documents reworked because they’ll be a series A and a series B now because of the subsequent loan for the $934,000.” This figure is coupled with an initial USDA loan of $1,724,000, what was approved in September of 2014.

“We will take a first lean on the sewer system, on parody with the other loans that we have outstanding with you now,” Ross said. “We will obligate this loan at an interest rate of 1.375 percent, and it will have a 40-year bond term, the same as the initial loan. The initial loan was obligated for 2.375, but we were able to do these funds for you at 1.375.”

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