Boone Co. Ends Loan Agreement with SD1 Per Utility's Request
The Boone County Fiscal Court voted Tuesday to terminates its 2016 agreement with Sanitation District 1 at the utility's request.
The 2016 Hebron Sanitary Sewer Loan Agreement was no longer necessary, according to SD1 executive director Adam Chaney.
In 2016, the fiscal court agreed to the loan as Hebron was nearing its sewer capacity and SD1's financial resources were limited, a news release said.
Instead of placing a moratorium on the proposed new housing development in the unincorporated community, the fiscal court voted to enter into an agreement with SD1 to provide capital funding to upgrade Hebron's sewer system and to provide additional sewer capacity.
The loan agreement required full repayment with interest through sewer connection fees at the new development.
Tuesday's vote at the fiscal court was unanimous.
SD1 cited an improved financial standing in requesting termination of the loan agreement. SD1 never activated the loan from Boone County and its board of directors voted last week to terminate the agreement..
“I am so pleased that SD1 and Boone County have reached this conclusion. Without the Fiscal Court stepping up when we did, the Hebron community would have exhausted all available sewer capacity and economic development would have come to a halt. The taxpayers should be very pleased that our commitment avoided a building moratorium and yet not one dollar was spent,” said Judge/Executive Gary Moore.