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Utility district sets up reserve funds

The LaGrange County Regional Utility District took action to set up three reserve cash funds at their meeting last Thursday.

The funds will be for Operational and Management Reserves, Capital Reserves, and Miscellaneous Reserves. Each reserve account will have enough for two months of expected expenses.

For the Operational and Management Reserves, that will be approximately $250,000. Under the Capital Reserves, the district expects to have a reserve of around $525,000, and around $300,000 for the Miscellaneous Reserves account.

The reserves funds will be reviewed every year starting in January 2015.

The board also discussed refunding some bonds due to changes in the financial markets. The board approved moving ahead with getting exact numbers for refunding to determine how much the district would be able to save over the life of the bonds. A conservative estimate presented Thursday showed the district having a net saving of $1.4 million over the life of the bonds.

In other business:

The board was told that a Shipshewana West property owner has claimed that the district or its contractor had removed lot boundary pins at his location. The board was told that the engineer had determined that there had not been a pin at that location during the initial survey.

The board approved terminating billing and to not require a storage structure to hook into the system in the Shipshewana West service area. The cottage in question had reportedly had all plumbing removed and is used solely for storage. The owners had also requested a refund of previous charges to the location, which was turned down by the board.

The board approved the low bid from D&S Builders for changes to the district’s office for security and an emergency exit from the boardroom.