Three loans were consolidated into one by Hennessey’s Utilities Authority last week.

That will give the town a $1.104 million utility system and sales tax revenue note and reduce its interest rate from 2.70% to a 2.25% fixed rate.

That’s an estimated savings of $4,067.19 on the 15-year, two-month loan according to information given to the board by Municipal Finance Services Inc., Edmond.

Sanitation revenue and 1% sales tax will be added as security, along with continued water and sewer revenues and a mortgage on the system with the Oklahoma Water Resources Board, board members were told at their Thursday, July 19, special meeting.

Payments start in September and the new loan combines these balances:

• 2002 – $1,417,150 from Drinking Water State Revolving Fund (through OWRB) on the town’s reverse osmosis water plant (no interest but 1/2% fixed administration fee);

• 2012 – $1.8 million from Clean Water State Revolving Fund (OWRB) for wastewater system improvements (2.04% including administration fee).

• 2017 – $480,000 from Utility System Revenue Note for wastewater system improvements (2.70% fixed interest).

Town Administrator Tiffany Tillman said combining the loans will help if they applied for another OWRB grant.

During discussion, Trustee Richard Simunek asked if the loan was called if the town would have enough money to pay it off, and how much money the town has in reserves.

Tillman said she wasn’t sure exactly how much they have in reserves, but they could pay it off.

Ben Oglesby with Municipal Finance, and attorney Nathan Ellis with Public Finance Law Group, went over the documents, answered questions and stayed after the meeting for the note signing that took about 30 minutes.

Members of the utilities board are the same as the town trustees, but the authority is another entity and holds a separate meeting, usually after the town trustee meetings.

Board members at the meeting were Vice Mayor Clif Vogt, Harold Shaw, Gritz and Simunek. Absent was Trustee Keith Meek.

Town Clerk Kati Walters, who also serves as minutes clerk, was present, in addition to Tillman.

In the audience on another matter were Jay Ladwig, Montie Bullis, Chris Fuksa, and Scott and Karel Hajek. (Ed. note: See construction code story elsewhere in this edition.)