VILLAGE OF LA FARGE
Special Board Meeting Monday, June 20, 2022
1). Village President Cheryl Purvis called the special meeting of the La Farge Village Board to order at 6:00 p.m. at the Emergency Services Building.
Roll Call - Present at the meeting:
Board Members: Cheryl Purvis, Karen Leis, Terry Jensen, Aaron Appleman, Barbara Melvin, and Frank Quinn. Absent was Aaron Nemec.
Also present: News reporter Bonnie Sherman (zoom), Gary Koch with CDA (zoom) joining later in the meeting, Public Works Manger Wayne Haugrud, Utility Clerk Greg Lawton, and Clerk Kimberly Walker.
2). Verification of posting at the Bank, Post Office, and Village Office on June 16, 2022, was given.
3). Cheryl reviewed a resolution, which is for the board to authorize the issuance and sale of up to $197,572 in water system revenue bonds, Series 2022, and providing for other details and covenants with respect thereto. This goes thru the requirements, formalities, and specifications of what will be in our bond, which will help us receive the DNR SDWLP principal forgiveness (grant). The interest rate on the loan amount is 1.221% per annum. The bond interest is payable commencing on 11-1-2022, then semiannually after on May 1 and November 1 of each year. Other items discuss the sale of the bond and what is required for deposits and investments. The utilities paid off our other bonds, so this one is primary. There will be a debt service fund set up, which Greg will put money into every month, the amount to be equal to one year of interest and principal, so there’s always money available to pay this loan. The total principal forgiveness we are receiving is $296,360 and the loan we are taking out is $197,572 at 1.221% interest.
*Quinn moved, Jensen seconded to approve Resolution No. 6-20-2022, authorizing the issuance and sale of up to $197,572 water system revenue bonds, Series 2022. (Carried).
* Gary Koch, with CDA, Inc., joined the meeting at this time.
4). Approval of related $493,932 DNR financial assistance agreement. This is an agreement with the State, DNR, and Village, saying they issued us the SDWLP/principal forgiveness funds. It sums up the whole project total of $1,591,432. Of that, we had CDBG funding of $1 million, will receive principal forgiveness of $296,360 from the SDWLP, and a loan for $197,572, with a net of internal funding of $97,500. The internal was funded thru the TIF, along with approximately $25,000 of interest on the $197,572 loan.
Gary added there was a delay with the engineering on what exactly was eligible, and with Delta 3’s help, we were able to get an additional $75,000 in funding.
*July 13th is the closing. Quarles & Brady will call and ask if everything’s okay. Then money will be wired to the account we’ve already set up, and the funds will be transferred back to the TIF account where the funds were expended and will be able to be used on other projects.
*Quinn moved, Jensen seconded to approve passing the $493,932 DNR financial assistance agreement. (Carried).
*Melvin moved, Appleman seconded to adjourn. (Carried). Adjourned at 6:24 p.m.
Kimberly Walker, Village Clerk/Treasurer