Public support, a planned expansion of the Jefferson wastewater treatment plant, and an upcoming bond issue are lining up to make a new animal shelter a reality.
Although it wasn’t on the agenda for the Jefferson city council’s Jan. 12 meeting, the council by consensus agreed to move forward with a bond issue of approximately $500,000 for a new animal shelter. The funds would be added to $634,000 raised by Don Orris and a small group of volunteers for the project.
The lowest of five bids received for the project in November was $1,007,000, which was considerably higher than anticipated. Orris told the city council he has tapped out the fundraising potential in the county, and that if the bids didn’t come in much lower on a February re-bid, he would call the project a failure.
The council plans to issue a total of $6.5 million in bonds in February. Of that, $4 million will pay off urban renewal bonds issued in 2012 and 2015, and general obligation bonds, also issued in 2015. Bond interest has decreased since the bonds were issued. Tim Oswald of Piper/Sandler estimates the city will save $300,000 over the next 15 years by paying off the older bonds with new bonds at a lower interest rate.
A new bond issue of $2.5 million will be used to pay for improvements to downtown commercial buildings. Most of that bond will be paid for using tax increment financing (TIF) revenue.
Setting the date for the required public hearing for that bond transaction was on the council’s agenda. Oswald attended the meeting via Zoom.
During the discussion, council member Dave Sloan, who is a member of the animal shelter committee, asked about the possibility of adding to the new bond issue to pay for part of the animal shelter.
Oswald and city administrator Mike Palmer had anticipated the question.
Oswald answered that because the site of the current animal shelter is needed for a state-required expansion of the wastewater treatment plant, “it makes sense the sewer project would pay some portion of the cost of moving the facility.”
However, determining a reasonable value to attach to the current shelter as it pertains to the sewer project will be more difficult, and the amount will be considerably less than what’s needed for the new shelter.
(The wastewater treatment expansion will be paid for through a state revolving fund (SRF) loan at 1.75 percent interest. The entire cost will not need to be borrowed, as the city has been building up its wastewater fund in anticipation of the project. However, increases in wastewater rates will pay a portion.)
Sloan asked about adding $500,000 to the bond issue for “new” money. Oswald explained the council would need to hold a second public hearing and issue a bond for only that amount, but that all three bonds could be issued at once.
The council set Jan. 26 as the date for the public hearing on the two bond issues originally proposed.
About a third, smaller bond issue, Sloan said, “I’d like to see us proceed with it. I know it’s a lot of money, but we’ve got to get going on this. We’ve been at it for five years. It’s past time.”
Council member Matt Wetrich said he’s heard many comments that people are supportive of the city supporting the rest of the project so it can be completed. “I think people appreciate the fact that there’s been a lot of time spent and energy spent raising the funds we have. There’s been a big effort to draw those private funds in… Feedback has been supportive.”
“All I’ve heard is positive things,” council member Darren Jackson said. “I don’t think this is irresponsible in any way. These are extraordinary times,” he said, referring to the Aug. 8 derecho and how it caused bids on the building to be so high. “This was so close to being accomplished, and then the goal line got mover further away. It wasn’t anyone’s fault. Now I think civically we need to step in.”
Council member Pat Zmolek said he has also heard positive comments for the most part. “I truly believe that once you start digging dirt and moving stuff around, you will get more community money falling back into it, as well,” he said.
Council member Harry Ahrenholtz was the only one not to speak on the subject.
Oswald said he would provide the needed paperwork for the council to consider a resolution at its next meeting to set a hearing for a bond issue for the animal shelter at the first meeting in February.
