The Patterson City Council approved preliminary action on the incurrence of $4.6 million in debt through bond issuances for the replacement of the city’s water works.
This follows on the heels of a recent bond issuance of $5 million, bringing the total city investment in the infrastructure to $9.6 million.
City Engineer Clay Breaux said the two combined bond issuances will cover the entire replacement of the water plant, including a new clarifier, intake structure and filter system.
Construction on the project is expected to begin next year.
Bond Attorney Jason Akers of Foley & Judell LLP said the unanimous approval of two related resolutions declaring a notice of intention to issue water revenue bonds and the adoption of technical amendments to the original ordinance providing for the incurrence of debt and issuance of the bonds for the waterworks project “was just a preliminary action to begin the process on the second bond issuance,” which will be set for a term of up to 40 years at 3.5 percent interest.
“This allows you to begin the legal process and allows you to publish a notice in the official journal for four consecutive weeks to open a reverse referendum, where anyone with objections can voice those objections to the bonds,” he said.
Akers also said a public hearing will be held at the Patterson City Council’s Dec. 4 meeting on the issue.
He also explained why Patterson needed two bond issuances to complete the project after the meeting adjourned.
“Both bond issues are for the water project,” Akers said. “The first was general obligation bonds voted on last year. With that (resident) vote, the city was authorized to take out $5 million in general obligation bonds through a special ad valorem tax. Unfortunately, there was a limitation on how much they could borrow, so they had to do other secure revenues for the water system.
“That is what this resolution for the $4.6 million is for.”
Patterson Mayor Rodney Grogan said as soon as the resolution is published, the city will begin to “worry about when work will begin.”
He also expressed pride in the fact that local banks are handling the bond issuances.
M C Bank & Trust Co. will purchase the bonds and Patterson State Bank will be the paying agent on the bond issuance.