BPU To Move Forward On City Approval For Water Plant Loan

 
By Shannon McFarlin WENK/WTPR News Director
Paris, Tenn.—At a short and sweet meeting Thursday morning, Paris Board of Public Utilities (BPU) General Manager Terry Wimberley told the board the USDA Rural Development water loan has now been cleared for approval by Paris City Commission at its September 6 meeting.
The loan request was put on hold for the August city commission meeting due to last-minute change in a refunding plan. Wimberley told the board the original loan budget included $500,000 that would be used to pay off the Phase 2 design loan through the State Revolving Loan Fund.
“Our understanding from SRF was that the design loan would be set up on a five-year amortization resulting in higher annual payments that would put a strain on water department financials,” he said. Since then, BPU learned the design loan cannot be changed from the original amortization schedule and refinancing with loan funds would not be a wise financial decision, he said. The refunding plan requiring review by the state comptroller’s office is no longer needed and has been withdrawn, he said.
The $7.2M loan amount must remain the same and the loan budget will be adjusted for how the $500,000 will be used, he said, noting BPU may use it for demolition of the water plant structures.
Wimberley also said after the meeting that remodeling of the BPU headquarters on E. Washington St. is on target for completion in late November.
In other business, Wimberley reported that 17 heat pump loans were approved in July, which is the largest monthly number since the program was started.
Photo: Terry Wimberley, top left, presents reports to the board. (Shannon McFarlin photo).