Company picked to market sewer improvement bonds for Fville

By JOHN MUNFORD
jmunford@TheCitizenNews.com

The Fayetteville City Council is going with a familiar company to market its bonds for the $6.55 million to expand the sewer system.
The council unanimously chose Merchant Capital of Atlanta for the job at its regular meeting last week. The same company underwrote the city’s 2001 Downtown Development Authority bonds for the Villages Amphitheater and other projects along with the city’s 1996 Water Plant revenue bonds.
The 1996 issue of water bonds will also be refinanced along with the issuance of the new sewer/stormwater bonds so the city can take advantage of lower interest rates.
The city hopes to have the bonds issued by the end of this year so some immediate work can begin on the sewer and storm drainage improvement program.
Merchant Capital will be paid $6.75 per $1,000 of bonds issued which is a “very competitive rate” according to staff. The total fee will be $94,000.
The law firm of King and Spalding in Atlanta is serving as Fayetteville’s bond counsel for the new issue.
The bond funds will be used to rehabilitate the city’s mothballed sewer plant and also improve the city’s stormwater drainage system.