The Gillett City Council has authorized bonding for up to $1.2 million to finance and refinance improvements to its water and sewer systems.
The council approved resolutions authorizing the issuance and sale of $729,000 in water system mortgage revenue bonds and $463,000 in sewerage system mortgage revenue bonds during its March 7 meeting.
The resolutions indicate that the bonds are a refinancing of water system revenue bonds issued in 2007, 2009 and 2020 and sewerage system revenue bonds from 2011 and 2020, as well as refunding interim borrowing to provide more permanent financing for that project.
The bonds will be payable at 2% annual interest or whatever lower rate is available at the time the bonds are issued, according to the resolutions. The principal repayment schedule calls for annual payments between $4,800 and $10,200 starting May 1 of this year and continuing through 2063.
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