The Newton City Commission on Monday considered a resolution to authorize bond financing for replacement of aging HVAC units at City Hall, Fire Station 2 and the recreation center but voted to table the measure to allow staff to provide more detailed debt estimates.

Ed, a city staff presenter, said the three facilities "are experiencing HVAC issues to 1 degree or another" and that the units were built in 2003, making them "20 plus years old." He told commissioners the total replacement cost for all three locations is $1,630,825 and that payments would come from the infrastructure and economic development sales tax.

Commissioners pressed staff for an estimate of annual debt service and for a clearer breakdown of which portion of the sales tax fund would carry payments. One commissioner asked for an annual payment estimate; another noted the city’s debt policy allows useful life to be matched to the term of financing. City staff and bond counsel cautioned the issue would likely be consolidated with other debt and that precise amortization depends on timing, bond size and interest rates.

A motion to table the resolution until the next meeting was made and seconded; the motion carried on a voice vote. The commission directed staff to prepare a rough amortization showing how the bond payment would fit into cash flow and to report back with a breakdown of the infrastructure/economic development sales-tax allocations.

Next steps: staff will return with an estimated annual payment, fund-breakdown information and possible timing options before the commission reconsiders the bond authorization.