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Clintonville may borrow $525,000

Funds to cover TID projects

By Bert Lehman


The city of Clintonville may borrow an additional $515,000 in 2021 to cover the cost of road projects, with the borrowing going through two tax incremental districts (TID) the city recently created.

When the Clintonville City Council met Dec. 8, it approved directing the city administrator to pursue plans to borrow up to $515,000 for the TID-related projects.

This approval does not authorize the borrowing of the funds, rather it allows city administrator to seek bids on options. The council would still have to approve the actual borrowing of funds.

“Because this is above and beyond where we have been talking as far as borrowing totals, I want to get the council’s, in essence, direct blessing to pursue putting together the bid packages, working with them to add in these funds to our next GO borrowing, which we’ll be doing the beginning of next year, for our 2021 through ’23 projects,” Eveland said.

Road projects that would be covered by the additional borrowing include 16th Street ($115,000), Grant Street ($60,000), ditch work in the industrial park where there are flooding issues ($25,000), Autumn Street ($125,000), and Industrial Avenue ($190,000).

If the borrowing takes place, the costs would be assigned to the individual TID where each project is located. This means there would be no impact on the city’s debt service, and each TID would pay for the costs.

Eveland said currently the city is not in the “positive” on TID 8 and 9.

“That’s just because they’re very early and very new,” Eveland said. “We haven’t had time to add a lot of incremental value.”

This borrowing would allow the city to do all the upcoming road projects together, which could potentially allow the city to save money on the projects.

“In order to do that, we really would need to borrow funds,” Eveland said.

By borrowing through the TIDs, the debt payment for the $515,000 would not be funded through the city’s property tax levy.

Debt transfer

The council also approved transferring $125,000 of an expected surplus to the Debt Service Reserve Fund and $140,000 to the Capital Fund. The transfers were recommended by Eveland and the Clintonville Finance Committee.

At the Dec. 7 Finance Committee meeting, Eveland told the committee that the city was projecting a $260,000 surplus in the General Fund for 2020. Eveland said most of that amount is from the Contingency Fund, which the city did not use very much in 2020. The rest of the surplus is from operational savings throughout the year.

After the transfers, the city is projecting a Fund Balance of $1.3 million. The $1.3 million balance equates to roughly 33% of the city’s General Fund expenditures. The city is required to have a Fund Balance of at least 25% of the city’s General Fund expenditures.

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