Memorandum No. 05-103
Date: June 7, 2005
To: Mayor and City Council
Thru: Walt Wrede, City Manager
From: Dean W. Baugh, Finance Director
RE: Ordinance 05-32, USDA $400,000 Loan
Attached is Ordinance 05-32, accepting and appropriating the $400,000
loan for the library project.
Resolution 05-56(A) approved an additional loan of $500,000 to a total
loan amount of $2,200,000.
The request was reduced to $400,000
recently when the State USDA office realized that $500,000 was above their
signature level and the entire loan packet would need to be forwarded to
Washington DC for approval. They
suggest the reduction to $400,000 which is within their signature authority. If the file was sent back east it could take
a couple of months to get it authorized and we risked losing the current
interest rate.