Ashland Mayor Gene Rhorer says he has spent enough time attempting to please the Missouri Department of Natural Resources and was set to ask the Ashland Board of Aldermen to allow him to seek financing bids from area banks.
Rhorer said Monday he expected to receive approval from the aldermen at Tuesday’s regularly scheduled meeting.
“We are borrowing $5.7 million for the construction of a sewer plant that DNR tells us we need,” Rhorer said, “but when interest rates go up Ashland voters approved a $7 million bond issue in August, 2014 for a new mechanical sewer treatment plant. The infrastructure for development near the airport led by Larry Potterfield and at The Baptist Home – both of which are underway – has the City of Ashland concerned about living up to their commitments.
“We have our user rate study,” Rhorer said, “and we know how much we will be collecting from users. We did that as we raised rates. But the interest rate has increased as DNR continues to study the plans.”
Rhorer pointed out that when interest rates go up a quarter percent on $5.5 million, that amounts to a $400,000 expense over twenty years. “It just costs us more money if we wait another year,” Rhorer said.
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