City council approves sale of bonds to finance 2009 street projects
The New York Mills City Council last week passed a resolution providing for the issuance and sale of $330,000 general obligation improvement bonds to finance the 2009 Street and Utility Rehabilitation Projects.
A representative of David Drown Associates provided bond information to the council.
The city will be completing improvements to Gillman, Hayes, Walker, VanAernam, Nowell, and Frazee Streets. The council opened bids on the project in April.
Total project cost is $2,012,994. Construction, engineering and contingency cost is $1,988,944. Capitalized interest is $7,100. Bond discount and issuance expenses total $16,950.
Revenues associated with the project include two PFA grants. The city received a drinking water grant for $173,917; and a clean water grant for $683,201.
The city also qualified for two low-interest loans. A drinking water loan totals $695,668 at 1.296 percent interest for a 19-year term; and a clean water loan is $130,134 at 1 percent interest for a 19-year term.
The bonds will be issued as General Obligation Improvement Bonds and at least 20 percent of the project costs are required by state statute to be assessed.