NEWBERRY — City Council authorized second and final reading of an ordinance last Thursday for the lease-purchase of a vacuum truck.
Mayor Foster Senn said this truck was used in the wastewater business. The principal amount of the agreement is not to exceed $550,000. The financing would occur at an interest rate of 4.59% for a term not exceeding four years. Motion to approve first reading was made by Councilperson Lemont Glasgow and seconded by Councilperson Jackie Holmes.
Also approved on Thursday by council was a request for authorization to transfer up to $3,500,000 from the city’s rate stabilization fund account to the gross revenue checking account.
City Manager Jason Taylor said the request was driven by needing to provide matching funds for a South Carolina Rural Infrastructure Authority grant through the South Carolina Infrastructure Investment Program (SCIIP). Taylor said the city received $10 million, the maximum able to be received, and it would require a $2.5 million match from the city.
While the funds were previously authorized by council in the budget, Taylor said the city just needed the authority to transfer the funds due to timelines associated with the grant. The funds will be used to upgrade two intersections of sewer line in the city limits.
“We have to have the project bid out by December of this year, with the project completed by December 31, 2026,” Taylor said. “These lines are just older, from 1977 and their lifespan is over.”
While getting things in order to proceed with the grant, Taylor said a portion of this sewer line, located near Belfast Road failed. The city spent $750,000 with another $200,000 outstanding to repair, Taylor said.
These expenses combined make up the $3,500,000 transfer needed. Motion to approve the request was made by Councilperson Carlton Kinard and seconded by Councilperson Edwin Wicker.
City Council will meet again on Tuesday, September 10 at 7 p.m.