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Paying for Street Repairs
Mon August 20, 2012
Macomb Getting Ready to Sell Bonds
Macomb is in the process of lining up the financing for its multi-year street repair program.
The goal is to have all the financial paperwork and the bond sale completed by October 1. Construction won't start until next spring but Mayor Mike Inman said the money is needed sooner because there is plenty to do between now and then.
“We're going to incur some engineering costs. These are not projects that are sitting on a shelf ready to roll. We're going to have some significant costs,” said Inman.
He said the city will invest the rest of the money until it's needed to pay for construction.
The city has a list of street repair projects but has not made a final decision on which ones will be funded. The list of top priority projects includes the courthouse square, a stretch of East Carroll Street, a section of North Ward Street, and a portion of Wigwam Hollow Road plus the bridge on that street.
Inman said the bond issue will be approximately $7.4 million. The city will repay it over 15 years using $600,000 of sales tax money per year.
Inman hoped to finance the project through a local financial institution but stressed the bank's location will not be the determining factor.
“We're talking about a significant amount of money. When you're talking even a quarter or a half percentage point over time is a considerable amount of money,” Inman said.
“Obviously, our preference may be to do business locally but we do have to be good stewards of the citizens' money. So we'll find that balance I think, one way or the other.”
The city council held a public hearing on the bond sale during its August 20 meeting. No comments were made by the public or any of the aldermen.