PEA RIDGE — To begin two projects, the city has taken out two lines of credit at the two local banks, after extensive discussion at the regular City Council meeting Tuesday, April 17.
“We have a deadline of Sept. 1 for the wastewater project to begin,” Mayor Jackie Crabtree told councilmen. “This is just something to be able to get us started.”
Representatives from Community First Bank were present.
The interest rate offered by Community First was slightly higher than the rate by Arvest Bank, but Community First officials agreed to match the Arvest rate. The line of credit for improvements to the Library was $150,000 from Arvest Bank and $500,000 for the sewer project from Community First.
The interest rate is 3.03 percent.
“It doesn’t mean we’ll spend that much, it’s just a number to get us started,” the mayor said, adding that there is $60,000 in the Library savings account and a grant is being sought. “We’re still looking, if anybody wants to donate, we are a tax deductible entity.”
The sewer project will ultimately be financed with abond issue, but that will take several months to get approved, according to city attorney Howard Slinkard. The city has to do an environmental study first, he said.
Water/wastewater superintendent Ken Hayes told city officials he planned to start on the headworks of the sewer project first and expected that to cost about$30,000.
Melody Martins with Community First told council members the city only pays for what money it uses, not the entire amount of the line of credit.
“I appreciate Community First showing up at our meeting and calculating monthly payments for us,” Ray Easley, councilman, said.
News, Pages 1 on 04/25/2012