The Bath Utility Commission is looking to repay the Village of Bath the $650,000 it borrowed in December to pay a bond issued to Bath Electric Gas and Waters Systems.
Bath Village Mayor John Stranges said the utility commission and village officials met Wednesday to discuss options to remedy the ongoing funding issue.
“It was decided we’re at the point where we have to get a professional bond expert in to help,” Stranges said. “The expert will help decide how the money will be paid back to the village, and how to make sure this doesn’t happen again.”
Stranges said the utility commission plans to pay the village back the $650,000 by May 31, as it agreed to do when it borrowed the money, but will then re-borrow the money in early June.
“The utility commission will then consider a 10-year plan, allowing them to pay the village until it’s paid off,” Stranges said.
BEGWS Director Matthew Hunter could not be reached Thursday for comment.
Hunter told the village board in December that he was notified the bank could not renew the bond. If BEGWS had failed to pay off the bond, it would have been in technical default, forcing a new loan at sharply higher rates.
The Bath Utility Commission is looking to repay the Village of Bath the $650,000 it borrowed in December to pay a bond issued to Bath Electric Gas and Waters Systems.
Bath Village Mayor John Stranges said the utility commission and village officials met Wednesday to discuss options to remedy the ongoing funding issue.
“It was decided we’re at the point where we have to get a professional bond expert in to help,” Stranges said. “The expert will help decide how the money will be paid back to the village, and how to make sure this doesn’t happen again.”
Stranges said the utility commission plans to pay the village back the $650,000 by May 31, as it agreed to do when it borrowed the money, but will then re-borrow the money in early June.
“The utility commission will then consider a 10-year plan, allowing them to pay the village until it’s paid off,” Stranges said.
BEGWS Director Matthew Hunter could not be reached Thursday for comment.
Hunter told the village board in December that he was notified the bank could not renew the bond. If BEGWS had failed to pay off the bond, it would have been in technical default, forcing a new loan at sharply higher rates.
