By Megan Hopps
SUN PRESS Newspapers
On Aug. 11 the Dayton City Council approved the issuance of $9.6 million refunding bonds and pledged an additional $6.5 million in cash from prepaid special assessments to refund the 2006 and 2007 improvement bonds, and in the process saved $11.8 million.
“This is very good news, because it eases a future financing gap of the 2007/08 improvement bonds,” said Mayor Tim McNeil. “Previously, there was a significant funding shortfall in approximately 15 years, which would have likely required some pretty big tax increases in 2028. Now, due to this refunding, the funding gap has been eliminated. This is a big deal for the City of Dayton and we are very pleased with city staff, along with our finance consultant, Ehlers and Associates for putting this together.”
Essentially, bonds are the way cities borrow money. The city was able to refund the bonds which shortened the term by five years. This in turn reduced the interest cost to the city and its taxpayers.
“That’s the most savings I’ve ever seen in my career,” said Interim City Administrator Bob Derus. “By refunding these bonds the city has eliminated the debt bubble and can potentially lower tax rates in the future.”
Because the city was able to prepay these bonds and eliminate interest costs, this eliminates the need for future tax increase.
In other news, the council reviewed an application submitted by the Dayton Police Department to approve the funding agreement for the Hazard Mitigation Grant Program project. This was the same grant that was used to purchase and install the new warning siren on North Diamond Lake Road. This grant would allow 75 percent funding for the purchase and installation of a new severe weather storm shelter in the Dayton mobile home park. The remainder will be left to the owner of Dayton Park Properties.
Police Chief Richard Pietrzak began working with Homeland Security and the Dayton mobile home park on constructing a new storm shelter for the residents. The project will serve as an area of refuge during severe weather events. After the approval of this item, the city entered into an agreement with Dayton Park Properties to fund this project for the residents of the mobile home park.
Dayton City Council and staff also:
APPOINTED Martin Farrell to lead maintenance worker. The city recently adopted a plan to restructure its public works department. This involved the elimination of a public works director position and involved appointing a lead maintenance worker. This restructure will save $88,000 which is 3.1 percent of the general fund budget.
PURCHASED a skid steer for ditch and ball field maintenance, landscaping, lifting heavy items and for clearing snow around fire hydrants and catch basins.
ISSUED a raise for Kathleen Hammer who works for the city to map GIS coordinates.
APPOINTED Susanne Jacobs as a part-time receptionist/accounting clerk.
APPROVED the replacement for the fire department doors and entry system.
Contact Megan Hopps at [email protected]