April 20, 2024

More than $3.6M in loan agreements aiding city improvements

By Jamee A

To continue improvements throughout the city, including constructing streets, installing public emergency sirens and moving forward with several programs that have been successful in Newton, city council approves multiple loan agreements totaling more than $3.6 million. (Jamee A)

More than $3.6 million in loan agreements were approved to continue city improvements and essential work of the city.

A series of public hearings were held for the Essential Purpose Loan Agreement, Urban Renewal Loan Agreement, General Purpose Loan Agreement and Hotel Maytag Loan Agreement before city council approved the resolution for the funding.

“The action will have a dramatic positive effect on the community,” city administrator Matt Muckler said. “Many roads will be significantly upgraded, key equipment will be updated and innovative projects will be undertaken. The bonding represents a large investment by the community that will produce visible results for all citizens.”

The Essential Purpose Loan Agreement is the largest of the four loans at a total not to exceed $2.3 million. Funds from this loan will be used to pay the costs of constructing streets, water systems, storm water draining, sanitary sewer systems and sidewalk improvements, installing public emergency sirens, acquiring public works equipment and vehicles and acquiring vehicles and equipment for the municipal police and fire departments. It will also be used to replenish the dangerous and dilapidated fund to demolish and restore properties and provide funding for the Newton Housing Initiative Program.

Broken down, approximately $1 million will go to fund the Fairmeadows North infrastructure, approximately $500,000 will go to refund the Dangerous and Dilapidated Program and another $500,000 will be used for the Housing Incentive Program with the remainder of the funds going to various capital expenditures approved in the fiscal year 2018 annual budget.

Additional capital expenditures include:

• City building improvements: $173,000

• Golf Course Rough Mower: $58,000

• Police Vehicle Lights and Equipment: $53,000

• ADA Improvements: $50,000

• Outdoor Warning Sirens: $45,000

• Public Works Pickup Trucks: $34,000

• Police Vehicle (SUV) with 10+ year life: $28,000

• Community Sidewalk Improvements: $25,000

• Fire Turnout Gear: $15,000

• Public Works Mower Snow Blade: $10,000

• Fire SCBA Bottles: $9,000

Funds from the Urban Renewal Loan Agreement, totaling $550,000, will be used in North Central Urban Renewal area. Benefactors will include the Newton Public Library and improvements to the building and its interior and the DMACC Newton Campus to continue improvements to the facilities and ongoing work to refurbish the former Maytag facility for future use.

The General Purpose Loan Agreement totals $325,000 and will be used to pay the costs of construction improvements to the municipal office complex/public safety offices and other municipal buildings, purchasing a mower for the Westwood Golf Course and bringing public buildings, grounds and infrastructure into compliance with ADA requirements.

The portion allotted for the Hotel Maytag restoration project is not to exceed $500,000. It will be used for various costs associated with the upkeep of the building and a partnership with a development group to restore the historic structure.

Even with the addition of the loans, the city’s current debt service levy will not increase.

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com