City OK's bonds with emergency clause
The Cottonwood City Council, by emergency passage Tuesday, agreed to authorize the Administrative General Manager to approve the refinancing of Cottonwood's 2006 water bonds, originally used to purchase Cottonwood Water Works.
At the same time, Cottonwood will get a loan from the Water Infrastructure Finance Authority to extend the city water line along SR 260 creating a new well site and redundant water line into Verde Village and permit the future development of land on the east side of the highway.
The emergency passage assures the low-interest rate will be locked in without waiting a month for normal council approval at a second reading. The speedy passage will prevent the refinancing and loan being re-considered by a new board.
The city will realize savings on the bonds of nearly $1 million in a single year and savings of over $4 million over the life of the loan, even after including the cost of the new $2 million grant.
-- Jon Hutchinson