By Deb Patterson
NORTH WEBSTER — The first step to get temporary operational funds will begin for the Tippecanoe & Chapman Lakes Regional Sewer District. The first reading of a resolution for a bond anticipation warrant will be presented at the Aug. 10 meeting.
Jeff Rowe with Baker Tilly Municipal Advisors, Mishawaka, presented information Monday, July 13, regarding temporary funding options. Rowe presented the three ways to get temporary funding until access to long term funding is available. Those options are through a competitive sale of bonds or negotiate the sale of bonds with local financial institutions or request proposals from local banks. The last suggestion, known as a hybrid solution, is the most common approach according to Rowe and was his recommendation.
Additionally, Rowe noted there are two ways to set up the loan — a lump sum and investing the money to earn interest to spend as needed or set up the loan to draw funds on an as-needed basis owing interest-only money used. He also suggested a two-year note, which can be extended, if needed until long-term funds are acquired.
Ed Ormsby, board member, questioned the timeframe to get the ball rolling and who makes the decisions on the loan. Rowe noted the ordinance could be prepared and ready for the August meeting for the first reading, with the second reading and final adoption in September. It was later noted the rules could be suspended and second reading waived. Rowe noted the ordinance would include flexibility of how the bond anticipation warrant is sold and be open-ended regarding the long term loan with the State Revolving Fund and/or U.S. Department of Agriculture Rural Development funds. Any decision on awarding the bond would be made by the board.
“The ordinance would set the perimeters for the proposals,” Rowe stated. The ordinance could be ready in 20 days.
“In the perspective of being good stewards, I would want to deal locally, rather than elsewhere,” Ormsby stated about his personal opinion. Other board members agreed. Jon Tyler, board president, questioned if just one financial institution had to be used, with Rowe responding there have been instances where several banks are involved.
It was unanimous to have Rowe contact Patricia Zelmer with the law firm of Ice Miller, to prepare the resolution. Once completed it will be sent to the members of the sewer district’s finance committee with a recommendation and first reading made at the Aug. 10 meeting.
Rowe also provided information on the time frame to apply for the SRF and USDA funds. Ken Jones, Jones Petrie Rafinski, noted what adjustments would be needed to the original PER as well as a complete environmental review, which would have to come from another entity.
After discussion, the consensus was to apply for the USDA funds in 2021. Rowe stated both USDA and SRF officials have been kept abreast of this project. “We want to try to get the project done at the lowest cost for the highest value,” Rowe stated.
The board did approve engagement agreements for district advisors with JPR, Chad Miner, Baker Tilly and Ice Miller.
In other business:
- Jeff Thornburgh, board member, was given the authority to make any necessary adjustments or decisions regarding the website to get it up and running.
- A letter will be sent to Steve Snyder, an attorney representing the Indiana University Development/Arnold Waterfront Estate Subdivision, regarding temporary holding tanks and the requirements needed to be presented to the board.
- Expressed appreciation to Mark Battlig, Camp Crosley, for the partnership request with the camp as planning begins for the sewer system.
- Heard from Greg Fitzloff, Tippecanoe Lake, on additional funding agencies as well as a suggestion of having the sewer district put in a tax increment finance district.