RESOLUTION OF THE TOWN COUNCIL OF THE TOWN
OF MILLERSBURG, INDIANA, AUTHORIZING BORROWING
FROM WATER UTILITY FOR PAYMENT OF IMPROVEMENTS
TO THE SEWAGE WORKS
WHEREAS, the Millersburg Municipal Sewage Works, (the “Sewage Works”) proposes to complete certain capital improvements at an estimated cost of $101,500 (the “Project”); and,
WHEREAS, the Town of Millersburg (the “Town”) has employed H.J. Umbaugh & Associates to prepare a rate study and financial plan for said Project; and,
WHEREAS, the Town has certain surplus funds available in its County Economic Development Income Tax (“EDIT”) Fund and Cumulative Capital Funds to contribute to the Sewage Works to fund the Project; and,
WHEREAS, the Town owns and operates a Municipal Water Utility (the “Water Utility”) which currently has funds on hand available to loan to the Sewage Works for said Project; and,
WHEREAS, the Water Utility has met its reserve requirements for its outstanding indebtedness and has surplus funds available for loan to the Sewage Works;
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF MILLERSBURG, INDIANA, THAT:
(1) The Sewage Works is in need of approximately $101,500 to fund certain capital improvements (the “Project”).
(2) Funding of the Project is to be from the following funds:
| Contribution from Cumulative Capital Funds | $26,000 |
| Contribution from County EDIT Fund | $55,500 |
| Loan from Water Utility | $20,000 |
| Total: | $101,500 |
(3) The Sewage Works borrow from the Water Utility Improvement Fund said sum of $20,000.00, and that repayment from the Sewage Works be made with principal and interest payable annually on June 1st, commencing June 1, 2001; with interest at 2.50%; according to the following schedule:
Date |
Balance |
Principal |
% |
Interest |
Total |
6/1/01 |
$20,000 |
$3,800 |
2.5 |
$500 |
$4,300 |
6/1/02 |
$16,200 |
$3,900 |
2.5 |
$405 |
$4,305 |
6/1/03 |
$12,300 |
$4,000 |
2.5 |
$307.50 |
$4,307.50 |
6/1/04 |
$8,300 |
$4,100 |
2.5 |
$207.50 |
$4,307.50 |
6/1/05 |
$4,200 |
$4,200 |
2.5 |
$105 |
$4,305 |
Total |
$20,000 |
$1,525 |
$21,525 |
(4) The Clerk-Treasurer is authorized to transfer $20,000.00 from Water Improvement Fund to Sewage Works Improvement Fund.
(5) The Clerk-Treasurer of said Town is further authorized and directed to transfer $360.00 per month from Sewage Works Cash Operating Fund to Sewage Works Bond and Interest for payment of said obligation to the Water Utility.
ADOPTED BY THE TOWN COUNCIL OF MILLERSBURG, INDIANA, this day of , 2000