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Lonsdale approves sale of $2.7 million bonds
Expanding infrastructure does not come cheap, and at the regular meeting of the Lonsdale City Council rescheduled to Tuesday, Aug. 27, the council approved the issuance of up to $2,750,000 in General Obligation Bonds Series 2013B. The money from the sale of the bonds will be used for constructing the roads, sewer and water extensions at the intersection of State Hwy. 19 and Garfield Avenue for the Lonsdale Business Park.
Northland Securities Representative Bill Fahey told the council that the exact interest rate on the bonds would be determined upon the sale, but with the city’s A+ rating, they would qualify for a better interest rate.
The finance plan summary prepared by Northland Securities shows that the total cost of the project is $4,235,000 with funding sources being $2.7 from bond sales and $1.5 from the DEED grant. Repayment of bonds will take 15 years and come from special assessments and a property tax levy.