The Madisonville City Council took the next step in rehabilitating its ailing sewer system Monday night with the approval of an ordinance to sell certificates of obligation.
The council also awarded bids for the sale of $1.75 million of certificates to First National Bank of Huntsville. The repayment will be for 12 years at 3.058 percent, with the option to pay in full after 10 years.
City Manager Camilla Viator said it will cost the city about $180,000 per year for repayment.
The funds will be used for repairs to Lift Station 8 on the east side of town, and to begin the city's project to replace current water meters with automated water meters.
Through the certificates, the city expects funds by the end of March, allowing work to proceed earlier.
The new meters were losing about 20 percent of revenue with the old water meters. The new meters will also allow the city to improve its billing and to monitor leaks and over usage.
In other business, the city:
oapproved a resolution that authorized the city's continued participation in the Atmos Cities Steering Committee, at a cost of 2 cents per resident, which helps negotiate rates;
oapproved a land lease with the Brazos Valley Council of Governments for a structure to house equipment related to a fiber optic network, which will provide broadband service to the city, county, police, schools and hospitals; and
oapproved a plan for resident participation in the Texas General Land Office Community Development Block Grant Disaster Recovery Program.