SHEPHERDSVILLE - With one more influx of funds, Shepherdsville officials are hoping it might be the last hurdle to clear in its quest for financial stability.
The Shepherdsville City Council approved a general obligation bond issue to generate $3.5 million needed to complete a sewer interceptor line as part of a federal Environmental Protection Agency mandate.
According to financial adviser Marty Brown, the city’s first payment would not be due until June 1, 2012. Payments on the interest would be made each June and December.
The hope is that the city would be able to convert to more conventional financing in a couple of years.
The city’s current annual debt service of $2.1 million would increase by $82,000 a year with the new note.
Brown said trying to find a buyer of the bond issue was not easy, especially with Shepherdsville financial problems.
BB&T in West Virginia agreed to buy the note last week.
With the financing in place to complete the interceptor line, Brown hopes that would satisfy the EPA, which has threatened daily fines.
City attorney Joseph Wantland said he would be looking at the sewer ordinance approved earlier this year and included rate hikes of over 66 percent. Issues such as fee schedules for those who are served outside the city limits and who are part of the interceptor line would be studied.
Brown still recommended the city do a much better job of forecasting revenue trends and expenses.
When Mayor Scott Ellis found out in early January of the city’s financial straits, officials began looking at ways to improve the situation.
Brown was hired to look at bond issues for funding and for other financial ideas.
Part of the study was to increase sewer rates, which drew the ire of several people.
The council also increased the occupational tax from 1 percent to 1.5 percent.