GF council OKs new wastewater bonds

Friday, November 23, 2018

The Green Forest City Council voted Tuesday, Nov. 13, to approve Ordinance 668, authorizing the issuance and sale of water and sewer system revenue improvement bonds.

The council had previously voted in September 2018 to Pass Resolution 2016-03, approving the issuance and sale of water and sewer system revenue improvement bonds to finance the wastewater expansion project.

Mayor Charles Reece said the first bid for the wastewater expansion project came it at about $6.1 million.

“Because of the cost of materials, it’s going to cost more than that to complete,” he said. “It will probably be about $7.7 million.”

Reece said the city consulted with Raymond James and Associates, Inc., the underwriter for the initial bond resolution.

“They diligently went to work and were able to come up with another bond issue,” he said.

Jill Grimsley Drewyor, a member of Mitchell Williams law firm, read Ordinance 668, which states that the city of Green Forest has determined that additional extensions, betterments and improvements to the wastewater system are necessary in order to make services adequate for the needs of the city. The ordinance says the city can accomplish the acquisition, construction and installation of improvements through the issuance of its water and sewer system revenue improvement bonds Series 2018 in the principal amount of $1,949,000. It says the bonds would be issued on a parity basis with the currently outstanding system bonds, and the city had previously retained Raymond James and Associates Inc. to advise and assist the city with the issuance of bonds.

The ordinance says the mayor and city clerk are authorized to take all actions necessary to accomplish the issuance of the bonds, and the city council finds that the period of usefulness of the wastewater system will be more than 16 years from the original issuance date of the bonds, which is longer than the term of the Series 2018 Bonds.

It says the bonds shall be paid back in semi-annual installments of principal and interest commencing on June 1, 2019, and continuing on June 1 and Dec. 1 thereafter until fully paid. Bank OZK of Little Rock will serve as the trustee and paying agent, the ordinance says.

The council voted to approve Ordinance 668, passing an emergency clause to approve the ordinance on all three readings. The emergency clause states the project must be accomplished as soon as possible and cannot be accomplished without the issuance of the Series 2018 bonds.

The council later voted to approve the purchase of a new blower for the sludge tank in the wastewater plant for $8,674.45 and a new sludge pump for the sludge press for $11,282. Reece said the funds will be taken from the depreciation account.

The council voted to approve the purchase of three sets of turnouts for $8,148 and 13 extrication suits for $11,135 for the fire department. The funds will be taken from the emergency fund, Reece said.

Josh Siebert, a designer with Modus Studio in Fayetteville, updated the council on the new city hall and police department, saying the building should be completed in the next six weeks. He said the current city hall will need to come down soon.

The council voted to allocate $21,122.72 to relocate the recycling center and temporary dog pound to the location of the current police department.

The council’s next regular meeting is scheduled for 8:30 a.m. Tuesday, Dec. 11. The council will also have a budget session at 9 a.m. Tuesday, Dec. 18. Reece said the meetings may have to be held in the depot because of the new city hall construction.

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