RL borrows $450K to rehab towers

Published 12:04 am Wednesday, July 18, 2012

Local attorney Julie Moody outlines signature lines on the new USDA loan for Red Level town council.


Tuesday was a historic day in Red Level, as the town council executed a nearly $450,000 U.S. Department of Agriculture loan to rehabilitate the town’s two water tanks.

During the special-called meeting, Mayor Mike Purnell said when work begins, it will be the first project of its type since 1978.

“Really, it’s long over due,” Purnell said of the project which will provide funding to rehabilitate the town’s 200,000 gallon water tank and its 75,000 gallon tank.

The town voted to execute two bond series – one for $301,000 and another for $144,000 – for a 40-year term at 2.75 percent interest. Included in the series is the refinancing of an outstanding $114,000 warrant, which was financed at an interest rate of 5 percent.

“Really, it’s taken us eight years to get to this point,” Purnell said of the project. “Everyone on this council is thrilled we were able to accomplish this.”

Water revenue will be used to repay the loan.

Troy Hudson of Hudson Engineering said work will begin on sandblasting the tanks’ interiors and exteriors within a couple of weeks. Work must be completed within 120 days.

“And since work is being done on both tanks, that means we can work on one at a time, and no one in Red Level will lose their water,” Hudson said.

Council members also voted to authorize Purnell to sign any necessary paperwork in regards to the loan.

In other business, the council voted to:

• renew the contract with RDS to collect city taxes and business licenses fees;

• remove Stephanie Reynolds from the list of election poll workers as she is currently seeking a council seat, and to replace her with Elizabeth Coxwell.

• allow the town clerk to attend a court class in Orange Beach from Sept. 19-22.

The next town council meeting will be held on Aug. 21 at 7 p.m.