$2.05 million bond proposed for city

A public hearing has been approved for a $2.05 million general obligation bond for the City of Newton. City council approved to hear the proposal on several capital projects and equipment that have been identified for the fiscal year 2018-2019 budget during a special meeting on Monday.

The city is proposing to enter into three loan agreements including an essential purpose loan agreement not to exceed $860,000, an urban renewal loan agreement not to exceed $1.1 million and a general purpose loan agreement not to exceed $90,000. The loans will be a part of a general obligation bond that would be approved by city council.

“Half of it is monies that would be borrowed to support the development of Fairmeadows North, that would not affect the taxpayer at all,” city administrator Matt Muckler said. “The other half of the bond would be replaced by the debt service levy. In the budget we are working on, there would be no increase to those.”

The essential purpose loan agreement would be used to pay the costs of acquiring vehicles and equipment, including new radios, used by the Newton Police and Fire departments, the acquisition and installation of fuel tanks for the Newton Municipal Airport and the construction of street improvements in the city.

“The radios that we currently have will not be compatible with Jasper County law enforcement, basically making us unable to communicate unless we make that investment,” councilwoman Evelyn George said. “For the safety of our citizens, it has to be done. There are items that are too expensive for our general fund so we bond for them to assure we keep a safe community.”

The urban renewal loan agreement, at a total not to exceed $1.1 million, is created to pay the costs of undertaking an urban renewal project in the Fairmeadows North Housing Urban Renewal Area. The funds will also cover a grant to purchase land, the 70-acre Barton acquisition at Fairmeadows North, to the Newton Housing Development Corporation. When completed, the acquisition has the potential to create 155 new housing lots.

The final portion of the bond will be used for the general purpose loan agreement which will pay the costs of improvements to Maytag Pool. The public works department is looking to rehabilitate the two existing slides for approximately $85,000 including a new paint job.

The proposal to bond for the funds will be considered by the city council at a future meeting, but no date was scheduled.

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