1 Appomattox Town Council
Special Call Council Meeting May 5, 2015
The Appomattox Town Council held a Special Call Council meeting on Tuesday, May 5, 2015 at 6:00 p.m. at the Appomattox Municipal Building, 210 Linden Street, Appomattox, Virginia with Mayor Harvey presiding.
Members present: Timothy W. Garrett, C. Lewis McDearmon, Jr., Mary Lou Spiggle and Claudia G. Puckette.
Absent: N. H. “Jimmy” Mayberry and Steven T. Conner
Others present: Patricia Garrett, Administrative Assistant for Public Works; Jeff Elder, Facilities Director; Stacey Wilkes, Town Treasurer; Bill Gillespie, Town Manager and Roxanne Casto, Town Clerk.
Mayor Harvey called the Special Call meeting to order.
Mr. Gillespie provided information regarding the letter of conditions from the United States Department of Agriculture (USDA) for the Trickling Filter Plant project.
Ms. Wilkes provided a funding analysis for the USDA project. The funding breakdown consists of $3,780,000.00 in a loan and $879,000.00 in form of a grant for a total of $5,659,000.
The Town will be required to have the following reserves: Operation & Maintenance $130,473.00; Depreciation of Short-lived assets $164,200.00; and Debt Service Reserve $145,152.00. USDA is waiving the $650,000.00 capital reserve amount. The town already has the Operation & Maintenance and Depreciation of Short-Live Assets.
This will be a 40 year loan with an interest rate of 2.125%. The interest rate is now locked so it will not be higher but if it is lower at the time of closing we would receive the lower rate. The first two years will be interest only for approximately $79,800.00. The remaining payments will be monthly payments of $12,096.00 or annual debt service of $145,152.00.
The anticipated project completion date is during 2018. The debt service reserve would be funded in 2018. There would only be interest in FY 2019 and 2020. In FY 2021, the Town could have a need to subsidize from the general fund. This projection anticipates the worst case scenario and a 2.5% increase in expenses each year. The 2.5% increase has not been experienced for FY 2016. The expenses are flat for FY 2016.
The current VRA (Virginia Resource Authority) bond the Town has will be paid off in September 2021.
In conclusion, Mr. Gillespie and Ms. Wilkes concur it is time to take care of the aging Trickling Filter Plant. The project is financially possible for the Town.
Council thanked the staff for their hard work in making this possible.
2 Appomattox Town Council
Special Call Council Meeting May 5, 2015
On a motion by Ms. Spiggle, seconded by Mr. McDearmon, Council voted to authorize the Mayor to execute the necessary documents for the USDA project funding. Ayes: Garrett, McDearmon, Spiggle, Puckette. Noes: None Motion carried 4-0.
With no further business, Mr. Garrett made a motion for adjournment at 6:40 pm, seconded by Mrs. Puckette. Ayes: Garrett, McDearmon, Spiggle, Puckette. Noes: None Motion carried 4-0.
Roxanne W. Casto, MMC Clerk
Paul D. Harvey Mayor