The Centerville City Council at Monday night’s meeting passed a resolution setting a public hearing for 5:30 p.m. Monday, Feb. 3 at City Hall regarding the authorization not to exceed $5 million in general obligation capital loan notes for the East and West State streets and North 10th Street paving project.
Patrick Antonen, city administrator, said the city wants to approve up to $5 million in general obligation loan notes just in case bids for the street paving project come in higher than expected.
In a related matter, Jim Milani, Centerville attorney and resident, voiced his concerns with the street project. Milani touched on several topics, like conflict of interest with the bond underwriters, which in this case happens to be Ruan Securities, how the local school district has to get 60 percent voter approval to pass a bond issue but the city only needs a council majority vote and the unintended consequences the GO bonds will impact industrial, commercial, agricultural and residential properties in Centerville.
“There will be such hostility to the huge residential property tax increase that the voters will be unwilling to fairly consider school or other community bonding events where they are allowed to vote,” Milani said through a prepared statement distributed Monday night at the meeting. “Possibly, blindly voting against any tax increase because of the surprise and burden of this tax against residences to pay off the general obligation used for street funding.”
Milani asked to have the project delayed so more analysis could be done to see who benefits and who doesn’t, who should pay and establishment of the amount and ratio between general obligation bonds and special assessment bonds.
Milani said a property with an assessed valuation of $100,000 will pay an additional $250 per year or $2,500 for 10 years, which will hamper residential building in Centerville.
Milani said forcing industrial, commercial and residential property located “a distance from the paving project” and have minimal benefit to shoulder higher taxes “is unfair and unrealistic.”
Look for more discussion from Monday’s Centerville City Council meeting concerning the street paving project in Friday’s Daily Iowegian.
Centerville Mayor Jan Spurgeon presented the Jim Senior Memorial Citizen of the Month award for the month of January to five members of Operation Santa. Those present Monday at the council meeting to accept the award were Teresa Bogle, Joyce Thomas, Joy Davis, Patsy Dedenhoeffer and Mike Thomas.
In other action, the council:
• Rescheduled the Wednesday, Jan. 22 budget workshop meeting to 5:30 p.m.Thursday, Jan. 23 at City Hall.
• Approved two mayor reappointments: Richard Wakefield to the Park Board and Bette Howell to the Zoning Adjustment Board.
• Approved an addendum to an agreement with Hall Engineering for services in the street paving project area to “Provide traffic signal engineering services for design and construction administration for traffic signal installation at the intersection of Iowa Highway 2 and 10th Street.” The additional work calls for a lump sum fee for services in the amount of $20,900. At Monday’s meeting, Nancy Huisman, with Hall Engineering, said construction work for that part of the project is estimated at $150,000.
Monday’s council meeting adjourned at 7:06 p.m. The next regular Centerville City Council meeting is at 5:30 p.m. Monday, Feb. 3 at City Hall.