City Approves Water Plant Improvement Funding
The Rugby City Council met in special session Monday to approve a resolution to fund improvements to the water treatment plant.
The council received an offer from the North Dakota Public Finance Authority to purchase $465,000 in series 2015 water revenue bonds. The bonds were sold at a price of $503,500, which included the principal $465,000 plus a $48,686 net offering premium, less a $2,680 Bank of North Dakota Letter of Credit fee, a $1,994.81 NDPFA cost of issuance and $2,325 administrative fee, and a $3,186.19 underwriter’s discount.
The bonds are set to mature every June 1 for the next 10 years – next year it will mature at a two percent interest rate – and are payable only through water bill revenues. Next year the bonds are expected to generate $40,000 in interest, and interest is expected to increase to $45,000 in 2019, to $50,000 in 2022 and to $55,000 in 2024.
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