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City council approves $4.5 loan consolidation for water company

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By Stephen Lega

Lebanon Water Works is consolidating and refinancing loans of more than $4.5 million.

On July 9, the Lebanon City Council unanimously authorized the Lebanon Water Company to consolidate and refinance a pair of loans. Councilwoman Denise Fogle served as mayor pro tem during the meeting as Mayor Gary Crenshaw was not present.

The water company had previously received loans of $1.864 million and $2.787 million through the USDA Rural Development program. By refinancing the loans with Citizens National Bank, the interest rate will be reduced from 4.5 percent to 3.5 percent.

Lisa Mattingly, bookkeeper with the water company, said the refinancing will save the water company $221,848 over the life of the loans and will allow the loans to be paid off in 2030. Without consolidating, one of the loans would have been paid off in 2036 and the other would have been paid off in 2042.

The council also concurred with appointing Denise Thomas to the water board to fill the unexpired term of Dr. Joe Green.