The Jefferson city council at its Nov. 11 meeting approved an internal loan of $800,000 from the water plant construction fund to the tax increment finance (TIF) fund, an amount reduced from a $1.8 million loan discussed in September.
As city administrator Scott Peterson explained then, the city can’t receive TIF revenues unless it has certified TIF debt. That debt is usually via a bond issue. He suggested rather than selling bonds, the city could do an internal loan from the $3.09 million in a fund for the renovation of the water treatment plant. That project is still nine years in the future. The internal loan would save the interest the city would pay if bonds were sold for the TIF projects.
The $800,000 internal debt will cover $300,000 as a forgivable loan to financially support the construction of five low to moderate income apartments in The Jeffersonian (the 1921 school building); $100,000 for one year (reduced from $100,000 for each of five years) to fund administrative activities needed for economic development in the urban renewal area; $120,000 for one year (again, reduced from $120,000 for each of five years) for economic development; and $280,000 (reduced from $400,000) for other projects in the urban renewal plan, including a drainage project in the northeast part of town.
The approval was not unanimous. Council member Chad Sloan argued against the loan and questioned the portion of the loan for administrative activities. Peterson answered that police and fire protection are “the lion’s share” of general fund expenses, and that using another source of funding for administration would take give staff more flexibility with the general fund. The economic development portion would go to Jefferson Matters ($70,000) and Greene County Development Corporation ($50,000), also moving that from the general fund budget.
“I know property taxes are a huge concern,” Peterson said. “By doing this it just allows more flexibility in the general fund.”
Sloan quizzed Peterson about what city expenses would increase if the general fund were not covering administrative expenses. Peterson said it would depend on the priorities of the council, and that it could be a hedge against needing to increase property taxes to meet higher costs like public safety.
Council member Darren Jackson said he heard concerns that there would not be funds available if the water treatment plant needed to be replaced sooner than planned. He asked if the $2.2 million remaining in the fund would be enough. Peterson answered that he didn’t think the loan would have any impact on the city’s ability to do a capital project.
The motion to approve the internal loan was approved on a 3-1 vote, with Jackson, Pat Zmolek and Harry Ahrenholtz voting yes, Sloan voting no, and Matt Wetrich abstaining (because of his paid employment as director of Jefferson Matters).
The council approved a 30-day contract with PeopleService for a Grade 3 water treatment operator. The contract will give city staff more time to work with possible candidates and remain compliant with the Iowa DNR. Peterson cautioned the council that Grade 3 operators are hard to find and in the current market they’re paid more than city administrators.
During the “reports” portion of the agenda, Peterson reported that the chassis has arrived for a new fire truck, but it will be another year before the body is done.
He also commented on the amount of training the volunteer fire department does. the work of the Jefferson fire department. He said the state fire marshal training trailer was at the fairgrounds for training, and that all 25 volunteers are certified at Firefighter 1, “which is really fantastic. They do some really good work and they oftentimes aren’t even thought about,” he said.
During the open forum, resident Russ Gettler mentioned concrete ramps at the entrances to two downtown buildings. He said things extending out from the footprint of a building have not been allowed in the past, and asked who at city hall had approved them.
“Now we’re going to stick obstacles so people walking down the sidewalk have to walk around them, and today with people walking around with cell phones in their hands, not even paying attention, and now we’re going to put obstacles in front of them. Someone will stumble and sue us,” Gettler said. City code enforcement officer Chad Stevens agreed with Gettler that the ramps aren’t technically handicapped ramps because the grade isn’t correct. He said he was being “put on the spot” over the ramp at the new Public House, but that he would look into it.
