Water users in Henryetta are going to see an addition $4 tacked onto their bills starting January 1, 2016.
The $4 will be used to pay for $4,480,000 million with of improvements to the city water storage tanks, sludge drying beds and additional equipment for city crews to work with.
Council members authorized the charge Tuesday night at a special meeting with financial advisors. Worthy Akin said three financial institutions, j.P. Morgan Chase, Bank of Oklahoma and First Security Finance bid on a $4 million note for the city.
He said the low bidder was J.P. Morgan with a prepayment option after the first seven years of the note. Under that option, the city would get a 2.64 percent fixed interest rate.
Under the terms of the note, the city is pledging funds derived from water and sewer rates and sales tax money.
"All of the security is figured into our total revenues," explained city manager Ted Graham.
The rate increase will be figured into the water bill only. Graham explained if a person has a $70 water bill currently, it would go to $74 starting in January. trash, sewer and other rates would not be affected.
Some of that work will include replacing the million-gallon water storage tank east of town, rehabilitation of the 750,000-gallon water tank and work on the smaller elevated tower and maintenance of the water and wastewater systems.
