By Shavonne Potts
spotts@salisburypost.com
LANDIS — The board talked about financing regarding its general obligation bonds for the upcoming water project.
Most of the town’s cash is with the Cash Management System.
“It’s a better way for us to receive a better return on our money,” said Finance Officer Ginger Gibson.
Town Manager Reed Linn said the funds need to be in place by May 29 so that the town could proceed with the water project.
Mayor James Furr said he would be more comfortable if it were insured by the FDIC (Federal Deposit Insurance Corporation).
“The one negative thing I see is there is no guarantee on this money,” Furr said.
The town would have a cash management account and a term account, where most of the money would be held.
The term account would hold the bulk of the bond money and earn a higher rate for the town.
A certain percentage would be placed in a cash management account that the town would be able to write checks to pay for the water projects.
“It’s a better investment for cities and towns,” Linn said.
The town began looking into a water project when in 2007 it was told by the state it needed to make necessary system improvements.
Voters approved more than $6 million in bonds in November 2007 for the water and sewer projects.
By using bonds, the town could get a lower interest rate and be eligible for U.S. Department of Agriculture grants.
In April the town received $470,000 in loan assistance from Rural Utilities Service, a division of the U.S. Department of Agriculture. Including grant money and low interest loans, the project is more than $4.5 million.
The improvements are meant to address water quality issues. Work will include the replacement of smaller water mains with 12-inch water mains, abandoning old waterlines and installing two new booster pump stations.
Contact reporter Shavonne Potts at 704-797-4253.

In other action
The Landis board also:
• Scheduled its next budget session for May 29 at 6 p.m.
The town still has not heard from Salisbury or Kannapolis about any rate hikes to sewer/water that it may intend to pass along to its customers, of which Landis is a customer of both.
• Set its public hearing to adopt the 2012-13 budget for June 4, during its regular scheduled meeting.
• Approved a resolution to submit an application for the N.C. Small Town Main Street Program, which is offered  through the state department of commerce’s Urban Development Division.
The program provides technical assistance for towns in downtown revitalization, marketing and give the town ideas about enhancing the area.
Town Manager Reed Linn said the town applied several years ago, but were not chosen to participate.