Want a say in how the Village of Boyd charges you fees and raises needed funds?

Come on out to a special meeting Wednesday, June 17 at 7 p.m. in the village hall, regarding a potential loan and sewer rate hike.

Discussed at the Monday, June 8 village board meeting but without action, the prospective loan and sewer rate hike comes as the village seeks to address two fiscal related issues: a total of $452,098 in Patten Street expenses being deemed ineligible for grants or other funding, and a debt service coverage gap of $42,770 in the village sewer fund.

Presenting to the board on Monday was Mark Deraney, Vice President and Advisor at AMKO Advisor and AMKO Bond Services, potentially offering municipal advising services to the village on the matter.

“A lot of it is just analysis of the information the DNR is collecting,” Deraney said of prospective municipal advising services, then going into details of a loan and sewer rate decision to be made.

As to the former, a bank loan of up to $500,000 from Northwestern Bank was in view. As to the latter, closing the debt service coverage gap (mandated by statute at 125 percent of revenues) could mean a sewer rate hike of 21 percent. The loan offered four options at different terms and rates, with Deraney favoring those with shorter terms (five years) or higher pay down. The loans rates favored by Deraney in the Monday call were a 20 year loan for $500,000 with five year term at interest rate of 5.75 percent (leaving $421,688 after five years) and a 20 year loan for $500,000 with 10 year term at 6.25 percent interest, leaving $323,541 after the term was up. Loans were eligible for refinancing after their initial term, with shorter considered to have more benefits. Deraney said Northwestern was willing to do a drawdown account allowing the village to take out loan as needed, rather than the full amount.

That left the sewer rate hike, which could be done either through usage or meter charges. The village is required by statute to have 125 percent of its highest potential debt service payment, leaving a $42,770 gap at present. Meter charges were deemed a more reliable way to collect revenue, as raising the usage fees might lead to less use, impacting rate collection. The loan would act as a general obligation bond that put the village’s full faith and credit (and potentially a property tax) in view if funds were needed, while the sewer rate increase confined sewer costs to the sewer fund.

No action was taken Monday on either measure, though September 23 was set as the deadline to not lose out on other funding for Patten Street.

“At least we’re not Stanley,” Village President Bob Geist said after the board meeting. Compared to water rates doubling, a one-fifth or 21 percent hike in sewer rates wasn’t as bad—pending June 17 and the special village board meeting.