Council leans to use second-penny funds for Oriole Avenue reconstruction

City staff told the Lennox City Council on July 1 that the city has secured roughly 75% of the grant funding needed to rebuild Oriole Avenue and must decide how to fund the remaining local share, estimated at about $575,000.

Staff outlined three options: (1) use the city's second-penny sales tax fund balance to pay the local share in cash; (2) issue a sales-tax-backed bond to finance the cost (raising annual debt service to about $300,000 depending on rates); or (3) a hybrid that combines some cash and a smaller sales-tax bond to reduce both cash drawdown and annual debt service. Staff described option 3 as the least-risk approach, but noted option 1 would avoid interest costs and use a fund set aside for capital.

Council members generally favored option 1 (use of fund balance) while asking for more forecasting. “We have the money. That's what the money's for,” one councilmember said, and another noted the hybrid approach could be acceptable if it reduces interest costs. Staff said the council should make a final decision within about a month so design and bidding can proceed to allow a January–February bid and construction next year.

Council directed staff to return with a funding resolution and additional forecasting at the next meeting; staff will explore hybrid splits and seek updated loan-rate estimates for a potential small bond.