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Reidville council approves bonding to fund $1.7 million multipurpose facility and raises sanitation fee
Summary
At its April 22 meeting, the Reidville Town Council voted unanimously to approve bonding up to the town's capacity to help finance a proposed $1.7 million multipurpose facility, authorized use of Local Government Investment Pool funds for remaining costs, and raised the annual sanitation fee from $50 to $80.
Town Administrator Christine McKaba told the Reidville Town Council on April 22 that the proposed multipurpose facility is "currently estimated to cost approximately $1.7 million," and outlined financing choices the council would need to make as the project moves forward.
McKaba said the town’s bond capacity is limited to $1,178,256 and that borrowing the full amount would leave an estimated remaining project balance of about $521,744, not including bond attorney and financial advisor fees. She told council members that professional services for the project would likely total between 5 percent and 10 percent of overall costs and cautioned that forgoing a debt service millage would leave "very little room for error" in the town’s operating budget.
The council discussed loan term, the trade-offs between bonding the full capacity versus a smaller amount, and options to offset operating costs, including renting the new space and using funds from the Local Government Investment Pool (LGIP). McKaba also said the new building would function as Town Hall until a future downtown project is completed and noted a typical operating budget (excluding projects) is approximately $700,000.
After discussion, the council voted on a series of motions related to the project and town finances. Councilmember Bob Jordan moved, and Councilmember Amy Gore seconded, to approve a general bond amount equal to the town’s full allotted capacity of $1,178,256; the motion passed unanimously. The council then voted to use LGIP funds to cover bond attorney and financial advisor fees, the remaining project balance, and the cost of furnishing the new space; that motion also passed unanimously. Councilmember Amy Gore moved, and Councilmember Justin Beardsley seconded, to raise the annual sanitation service fee for residents from $50 to $80; the motion passed unanimously.
The council further authorized Councilmember James Richard and Administrator McKaba to proceed with retaining a bond attorney and financial advisor to finalize the motions. A final procedural motion was made at 6:42 p.m.; the minutes do not specify the text of that motion, and it passed unanimously.
No members of the public signed up to speak during the public forum. The meeting minutes were attested by Administrator Christine McKaba.
