Council Update - Bonding Update

Eyes on Main Street - June 20, 2013

Work continues at 6:00 on June 18, 2013.

Mike Bubany was at this weeks council meeting talking about the bonding for this project. Spring Grove received an A rating from Standard & Poor's. The hope was either A or A+, Spring Grove did not receive an A+ due to factors we cannot control. For example the median income level in town.

Bids for the bonding came in June 18 and rates have increased over the last month. Mike's recommendation was to choose the lowest bid, which was United Bankers Bank at 3.47%. The annual payment shows $210,000, but the actual payment will be closer to $188,000 per year. The council will need to make the decision on how to pay this each year. If it were all to go to tax payers through taxes and utilities, it would be around $27/ month. However, there are other ways to pay for this debt, using some of the enterprise fund and the existing budget. The council will begin looking at the budget in July.

The project is progressing well. They moved to 2b instead of 2a so as to keep moving down the street. Also water will be turned off on Thursday (tonight) from 6-8 pm from West Division to 5th Avenue.