A $19.2 million downtown infrastructure project is being planned by Buchanan City Commissioners.
At a meeting this week, they heard from bond counsel Roger Swets about the process of securing U.S. Department of Agriculture low-interest loans for the work. He said the city will seek two USDA loans, one for the water work and one for the sewer work. The commission will have to approve resolutions for each, along with a resolution settling outstanding bonds to qualify.
“The city’s adopted in previous commissions similar ordinances for the 2009-2010 bond issues and then the 2020 bond issues,” Swets said. “So this is just leveraging off of those previous resolutions. The structure is dictated by those ordinances.”
The loans will total $16.2 million and come with an interest rate of 1.375% to be paid back over 40 years. Swets said the USDA has previously indicated the city will be approved.
“You’ve got the advantage with Rural Development of the fact that they actually obligated these interest rates a couple years ago when they gave you the letter of conditions. And unlike the banks, they give you the lower of the rate at the time, or if rates were lower today, they would go even lower.”
The project will include the replacement of water mains that date back 100 years in some cases. It will also cover sewer work and streetscaping downtown.
The matter will come back to the city commission for a vote on the actual resolutions, and infrastructure work could start in the fall.
The overall project is expected to continue through 2027.
