LAKEPORT — In a special meeting held Tuesday to catch up on pressing business, the City Council approved two loan agreements that will finance city water projects for the short term and save the city money with lower interest rates.
City manager Margaret Silveira and public works director Mark Brannigan told the council that the “bridge financing” measure was necessary to maintain the city”s water system, meet regulatory demand and prepare projects for financing by the U.S. Department of Agriculture.
The resolution, approved by a 5-0 vote, gives city staff the go-ahead to work with Cameron Weist, the city”s bond counsel, to secure the loans which, if issued on the day of meeting, would be at a rate of 1.9 percent.
“We felt we had to do it now because of the favorable (interest) rates,” Silveira said.
The two outstanding obligations the city plans to cover are a U.S. Department of Agriculture bond for $3.05 million at 4.75 percent and a WestAmerica Bank loan for $874,000 at 5.1 percent, according to Silveira. The original amount of the loans is $3.9 million.
The council approved loan agreements and the issuance of water revenue notes in an amount not to exceed $7.7 million.
In other business, the council approved a commendation for Lakeport Police Officer Stephanie Green for her efforts to save a drowning Lakeport man on July 9. The commendation will be awarded to Green at the National Night Out event on Aug. 6.
The council will take that night off to participate in the event. The next scheduled council meeting is Aug. 20.
Rich Mellott is a staff reporter for Lake County Publishing. He can be reached at 263-5636, ext. 14, or rmellott@record-bee.com.
