![]() ![]() Ultimately a conversion is made to a Municipal 30-year bond once all details are known. These are 1-year notes and paid back interest only. Initially during construction, Bank Anticipation Notes (BANS) are utilized. the actual bonding/going into debt occurs. As details arise on a bonded project such as actual costs, grants awards, etc. However, there are many factors on a project that can occur after the bond resolution that results in the town going into much less debt/bonding than the estimate cost of the whole project, and in some cases NOT even proceed with the project. ![]() The bond resolution is something needed to "move the process along" on bids, grant applications, etc. We may see something similar in a few weeks when sealed bids are opened on July 19th on the $28 million bonded new Highway garage. I was surprised we had to do a bond resolution to the whole estimated cost of $9.5 million since we knew we had $5 million covered by grants. We saw this firsthand on Sandbar park as we bonded that for $9.5 million, even though we had already been awarded $5 million in REDI and DASNY grants. The reality is that municipal law requires that the governance does a bond resolution up to estimated cost of the project, even if it is known that monies for the project will come from other sources like fund balance, reserves and/or grants. From my perspective, there are three(3) overriding factors in play that make increasing the bonding from its current $44 million to $90 million "make sense":įACTOR 1: What the Bond resolution actually means? The main misconception of a bond resolution is that the town will definitely go into debt by that amount, and that it will occur within a short period of time. The July 12th workshop will be part of that process. As the Town Board and the citizens of Webster approach this the next 1-2 months, it is imperative that facts are presented so that rational, good decision making can occur. The Town Board Workshop of Wednesday, July 12th is scheduled to have a presentation that attempts to explain the reason for the increase to the Bonding from its current $44 million which was done in September 2022. when I first saw the proposed increase to $90 million on bonding for the Sewer plan, I had sticker shock. By law, that Public Hearing will be advertised in the Webster Herald's Wednesday, July 12th edition as it must be "No less than 10 days and no more than 20 days" from advertising to the actual Public Hearing. ![]() JThe Municipal Bond process- Town Sewer plantĪt the Thursday, July 6th Town Board meeting, a resolution will be voted on that sets a Public Hearing for July 27th for amending the current Sewer plant bonding. ![]()
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