By Michael Schaffer Managing Editor
The Daily Iowegian
---- — The Centerville City Council during their special meeting Wednesday at City Hall voted 4-0 to accept the resignation of Councilman Edwin Brand and by the same 4-0 vote approved a resolution declaring their intent to make an appointment to fill the vacancy created by Brand’s resignation.
The resolution describes how Brand came to be a part of the Centerville City Council and when he decided to not be a part. The resolution, read by Centerville Mayor Jan Spurgeon, said Brand was first elected in November 2011 to a two-year term in Ward 2. His Ward 2 term was set to expire at the end of 2013. Brand’s resignation letter was dated Nov. 6, 2013.
The resignation letter Brand submitted to the city reads, in part, “I believe it is only right that given the results of the election on November 5th, I step down and allow the newly elected candidates to immediately assume their offices.”
City Council terms run until the end of the year. Winning candidates are sworn in at the first of the new year.
In other action Wednesday, Nathan Summers, of Ruan Securities, briefed the council concerning financing for the East and West State Street and 10th Street paving project.
According to documents Summers presented to the council, the $4.5 million street paving project will be financed mainly by general obligation bonds. Even with this bond issue, the city of Centerville would still have nearly $4 million available in bonding capacity.
The proposed 2014 general obligation bond principal is $3,990,000 and interest on the bonds is $773,402.87 spread out over 10 years. The city’s prior debt service shows $1,170,000 in principal and $45,960 in interest for 2011 A and 2013 general obligation bonds set to be paid off June 1, 2018.
Getting to the $4.5 million total project cost is the addition of $600,000 in state funds.
The tax rate levy for the proposed 2014 general obligation bond issue starts at 1.43671 per $1,000 of valuation in FY 13-14 and ends at 4.55271 per $1,000 of valuation in FY 23-24.
The proposed 2014 general obligation bond issue increases the levy rate by a maximum of $3.1554 per $1,000 in valuation over the life of the bonds. For a property owner with a $100,000 assessed valuation, the annual tax impact is estimated at $171.65 to pay for the new bond issue.
The maximum total levy rate for all debt service in Centerville is estimated at $4.5921 per $1,000 valuation. For a property owner with a $100,000 assessed valuation, the annual total tax impact is estimated at $249.81 to pay for all general obligation debt service.
Landowners in the street paving project area are looking at a 10 percent special assessment of the total project cost or approximately $405,000 that can be used to pay for the bonds. Plus, $55,000 is available in road use tax to pay for the bonds.
Summers asked Bill Buss, with Hall Engineering, and he confirmed, that the bonding and state funds is for street work only and doesn’t include water or sewer.
The timeline offered by Summers has the Centerville City Council holding a public hearing on Jan. 20. The council is expected to authorize the issuance of the 2014 general obligation bonds on April 21.
Bids for the project are expected to be let in June.
Jay Dillard participated by telephone.
The special meeting adjourned at 5:54 p.m. The next regular Centerville City Council meeting is at 5:30 p.m. Monday, Nov. 18 at City Hall.