December 5, 2008

City council approves $1.48 million loan

City council approves $1.48 million loan



Parshall City Council members approved a $1.48 million loan Tuesday from the state revolving loan fund to offset costs of a new water treatment plant that is being built south of town.

Scott Wagner, an attorney from Bismarck, discusses the merits of the loan that incorporated cities across North Dakota use occasionally for a variety of purposes.

Unlike a traditional loan from a commercial bank, Wagner said the city of Parshall may draw money from the fund as it needs it and will pay interest only on the money that is actually used.

The $1,487,500 amount is subsidized at 2.5 percent over 20 years and the first payment will be due in September 2009. Wagner added there is a .5 percent administration fee, so the money that Parshall uses will be paid back plus 3 percent.

Wagner then presented a resolution of issuance that was voted on and signed. The loan will be payable from net revenue of water sold.

"Are there any questions," Wagner said? "No, it’s the best loan you’re going to get," added city auditor Loren Hoffman.

In other business: The council is changing the time it meets and had first reading of an ordinance changing the time to 8:15 a.m. on the first Tuesday of the month, rather than the present 9 a.m. The council’s January meeting will be held at 9 a.m. on Jan. 6, but on Feb. 3, the meeting will commence at 8:15.

Paul Broste Rock Museum board member Calvin Myers met with the council regarding a variety of items including funding, a working relationship with the city and the Parshall Promoters and a possible inventory.

One concern, according to Mayor Richard Bolkan, is to have a salaried employee on site because he has heard from people traveling through the area who want to see the museum and at times have stopped at his place of business hoping to tour the museum.

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