Jeff council approves levy rate, moves toward real estate deals

The Jefferson city council held one public hearing at its regular meeting April 13 and scheduled five other public hearings for the April 27 regular meeting.

The first hearing was on the proposed tax levy for the fiscal year beginning July 1. No comments were heard and the council then approved a resolution setting the levy rate at $14.91 (per thousand dollars of taxable valuation). Of that, $12.56 is for the general fund and $2.365 is for debt service. The total levy for the current year ending June 30 is $15.10.

The council then set the public hearing on the FY22 budget for the April 27 meeting.

Four public hearings were set for proposed sale of property as follows:

  • 100 E. State St, the location of The Tea Garden, to Why Not Us, LLC
  • 206 N. Wilson Ave, the former Pizza Ranch, to the Stitch, LLC
  • 305 E. Vest St, a vacant lot, to adjacent property owners John and Angie Wiggins, for $250
  • 502 W. State St, a vacant lot, to Camden Enterprises IV, LLC, for $250.

The resolutions for the two downtown properties include forgivable loans and redevelopment agreements, very similar to the sale last month of 205 N. Wilson to Meghan Von Behren. She plans to put a Funky Zebras boutique on the main level and an apartment on the upper level.

The agreement with Why Not Us includes a sale price of $40,000 as a forgivable loan from the city, and an additional forgivable loan of up to $110,000 for improvements. The agreement with the Stitch has a sale price of $78,000 as a forgivable loan from the city, with another forgivable loan of up to $72,000 for improvements.

In other business, the council accepted the bid of $142,079 from TK Concrete Inc of Pella for the 2021 alley reconstruction project. City engineer Jim Leiding of Bolton and Menk explained that eight companies had taken out bid documents but TK Concrete was the only one to submit a bid. The lack of bidders was primarily due to contractors’ schedules, Leiding said.

The engineer’s pre-bid estimate was $123,531. Leiding said using 7-inch pavement added $5 per yard to the cost, and that traffic control and mobilizing the project were bid at more than anticipated. Leiding advised the council that re-bidding the project would likely lead to the same result and recommended accepting the bid.

Bolton and Menk then asked for an amendment to the engineering agreement for the project. The earlier agreement included design and bid services at $16,500. That portion of the agreement is being paid during the current fiscal year. The amendment, an additional $14,500 payable in the new fiscal year, is for the construction phase.

The council approved resolutions authorizing the issuance of $3,585,000 in General Obligation corporate purpose and refunding bonds, Series 2021A, and the issuance of $1,755 taxable General Obligation urban renewal bonds, Series 2021B. The resolutions were the final step in the process.

City administrator Mike Palmer reported to the council discussion he had with the Greene County supervisors Monday about replacing Jackson bridge on S. Grimmell Rd. He said repairs were done five or six years ago, “knowing it was going to be short-term. The time is coming up that it needs to be replaced.”

Palmer has had conversation about the city-owned bridge with Greene county engineer Wade Weiss, as it’s on a farm-to-market road. The two plan to work together to access funds for the project, which is estimated at $3 million. The project is probably five or six years in the future, Palmer said.

Palmer also said he has talked with the supervisors about replacing the outdoor sound system around the downtown square. He said the current system functions, “but not well.” Total cost is estimated at $20,000. “It’s a good partnership [with the county] we’re working on,” Palmer said.

The council was briefed by councilman Darren Jackson, an ex officio member of the Jefferson public library board of trustees, on the early stages of a possible construction project. The trustees hope to have a feasibility study done of remodeling, renovation, or new construction. Such a study will cost about $40,000, Jackson said, and the trustees are looking for council action. After a brief discussion, Palmer requested a proposal from library staff the council could consider. Grow Greene County was named as a possible funder for a large portion of the eventual project.

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