City Manager Rashad Young told city council today that he plans to reduce a package of bond projects whose debt is scheduled to be issued next spring from $35 million to $30 million.
The savings would primarily come through a delay in construction of the Lake Jeanette Library in District 3, which is priced at $3.5 million. The remainder of the savings will be realized by using $2 million in bond funding that was issued last fall and not spent. That also frees up $515,000 to spend on the Randleman Fire Station, which is subject to “estimated increases in construction cost.”
The left-over bond funds would pay for the completion of Phase I of Keeley Park in District 2 and Phase I of the Hilltop Road recreation center in District 5. Young said that Phase II of Keeley Park, which is scheduled to be open in the next 18 months, will be delayed to future bond issuances.
Young said the reduction is necessary to manage debt service costs, which are challenged by the reality that the city is projecting no growth in property tax for the next fiscal year.
Council members did not comment on the city manager's recommended cuts, indicating approval.
The bond package reduction was discussed during a council briefing this afternoon. Council also heard a report on the city’s water and sewage capital projects.
The city cut water rates earlier this year, but Water Resources Director Allan Williams said the city will have to raise rates in coming years to cover anticipated costs. One major cost is retrofitting the TZ Osborne Waste Water Treatment Plant and the North Buffalo Waste Water Treatment Plant to comply with nitrogen removal requirements of the Jordan Lake Rules. The council led, by Mayor Bill Knight, is asking the NC General Assembly to delay implementation from 2016 to 2020, but Williams said the city is going ahead with preparations in case the request is not granted and considering that NC Department of Environment and Natural Resources might not be recognize the proposed legislative action.
Williams also said the city needs a new sewage pump station to accommodate projected industrial development on the city’s east side. The planned Intermediate Rock Creek Pump Station, with an anticipated price tag of $8 million, would intercept sewage at a location near of Interstate 85-40 and Stewart Mill Road.
Williams said, if Assistant City Manager Andy Scott “brings us one more data center or anything besides a warehouse that uses no water, we’re not going to have enough capacity.”
Both the requirement that the city upgrade its facilities to comply with the Jordan Lake Rules and the cost of a new pump station to support economic development will require a 5.5 cent rate increase in the 2012-2013 fiscal year and a 10-12 cent increase the following year.
Williams said the city has not calculated the additional cost of operations and maintenance stemming from the Jordan Lake Rules, which will begin in 2015.
1 comment:
The question to ask is "are libraries relevant in today's world"?
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