City of Norfolk Approves Bonds for Natural Gas Line

NORFOLK - The Norfolk City Council has approved issuing nearly $2.4-million in bonds to fund a natural gas pipeline on the north side of town that will provide gas for Tejas Tubular and other customers in and near Norfolk.  At Monday night’s meeting, City Finance Officer Randy Gates explained that the bonds will be added to a little more than $1 million currently in the city’s LB840 account to provide the $3.6-million the city approved on February 3rd.  Gates says the bonds will be privately placed with Midwest Bank, saving the city about $24,000 in underwriting fees. Because they will be used to fund private business activity, the bonds are subject to federal income tax.  The bonds will be paid exclusively with LB840 income. The bond issue will mature in June of 2021 and the bonds are callable in five years.