The Bluffton news. [volume] (Bluffton, Ohio) 1875-current, 1952-09-11

awards were mace Dy council
! special meeting in 10 days, no
legal c~ontractual agreements ian be
entered into until municipal authori-
ties clear up all the details of a man
sized financing, land easement and
property title search program.
Mondays meeting, eliminating the
planning of two preceding special
sessions, was marked not only by
tentatively awarding contracts, but
also by the authorization of three
separate procedures for financing
construction of the sewage disposal
plant aid intercepting sewers.
Contractors Designated
In 9Agnating the acceptance of
~contxak at the meeting Monday,
.lslth0sa2eh formal signing is subject
to completion of financing and ease
ments by October s, municipal
council accepted the low bid for
erection of the disposal plant. For
the sewer work the next to the low
bid unsolicited for the contract.
1 CONT htor for the disposal plant
viii = BeYsshing Brothers Construc-
ti9h b.,FFA Wayne, Ind, whose
Isow bkAor the wvrk=~Ss S26s $40.
reconstruction of thu network
of intercepting sewers, @uncil ac-
cepted the $21o,527.25 BIZ of Frank
Pfaff, of Bryan. ,
Tiffin Excavating Contractors had
submitted a bid s10,376 lower than
that of Pfaff, but the Bryan firm
was designated because of its long
er experience and better equipment
facilities for the work involved.
$585,000 In Bonds
Setting in motion the wheels to
provide funds for the sewage dis
posal project, councilmen Monday
night also took action to issue
$685. 900 worth of notes and bonds
needed to finance the various details
of the program.
Because of a lack of time requir-
? ing the completion of financing be-
, fore the Oct. 8 deadline, it was nec-
essary to issue one-year councilmanic
bond anticipation notes for two
phases of the financing program.
These notes will cover $180,0O0 in
general obligation bonds on real
estate,a authorized at the polls in
November, 1850, but which have not
been sold; plus $250,000 in anticipa-
ton of receipts from a special as
sessment program which still must
be set up by municipal authorities.
Money Borrowed
From the two issues of bond an
ticipation notes, council will receive
a total of $430 900, permitting a
istart on contract work while pre-
liminaries involved in selling the two
bond issues are being completed.
1t is planned to issue the bonds at
the time the notes expire, thereby
permitting the village to pay off the
notes at maturity.
I The notes were taken by Ryan,
Sutherland Co., of Toledo, the bond
house retained by the village last
spring as fiscal agents and advisors
on the sewage disposal system
financing program.
On notes covering the $4,000
general obligation bond issue, the
councilmanic notes provide for two
per cent interest. The issue OF
$3.50 900 in anticipation of special
assessments are at 2h per cent in
~terest. The difference in interest is
due to the fact that the $4,000
loan can be made at once, whereas
the other must await details of is
suing which may not be cleared up
until late November.
S155,O0O Mortgage Revenue
In addition to the two note issues,
councilmen also authorized Ryan,
Sutherland Co. to issue $685. 900 in
mortgage revenue bonds, in anticipa-
ton Of collections from sewer rental
charges.
Although this issue is for a total
of $155, 900, the town actually will
receive only s149, 032.50, inasmuch as
each $1,000 bond will be sold at a
discount of $3.50, to cover the cost
of processing all financial arrange
ments.
The mortgage revenue bonds viii
command 81 per cent interest, with
a net interest cost to the town over
la Is year period estimated at
sS5,379.50 additional, it was pointed
, out.
/ Financing Meets Schedule
With completion of action on the
/ three financing measures, the village
, will meet requirements for issuance
of contracts, it was pointed out, in
; asmuch as contractors are guaranteed
that money is in the process of col
lection and may proceed with their
work.
Another major obstacle remains
to be hurdled, however, before con.
CONTINUED on page 10Y