BRIEF MEETING PLANNED FOR BRENHAM CITY COUNCIL
The Brenham City Council will look to make quick work of a brief agenda at its meeting Thursday.
Only two items are on the docket for councilmembers to consider. One of those is an interfund loan between the city’s sanitation fund and water fund to repay an advancing line of credit with Bank of Brenham for the raw water intake structure repair project at Lake Somerville.
In July 2020, the council approved a $5 million advancing line of credit from the bank at an interest rate of 2.6 percent to provide interim financing for the repair project. According to Chief Financial Officer Carolyn Miller, the city anticipated receiving reimbursement from FEMA in order to repay the line of credit, which matures on July 1st; however, since the city is still awaiting response from FEMA, it will instead look to repay the line of credit with available cash reserves.
The current balance of the line of credit is $1,351,075, plus accrued interest. If approved, an interfund loan for $1 million would be repaid over 10 years with an annual interest rate of 2 percent. The remaining $351,075 and accrued interest will be paid from water fund cash reserves. Once the city receives FEMA reimbursement for this project, the water fund will repay the interfund borrowing from the sanitation fund.
The other item to be considered by the council is the appointment of a councilmember to serve on the Board of Directors for the Brenham Community Projects Fund, Inc. The non-profit foundation provides funding for quality of life enrichment for recreation, literacy and community philanthropy and development. Due to the recent election of new councilmembers, the officer position held by former councilmember Susan Cantey needs to be replaced.
The council will meet Thursday afternoon at 1 p.m. at Brenham City Hall.