July 23, 2014 at 2:10 p.m.
Council considers park bond
Portland City Council
Steps were taken toward financing a city park and phasing in new taxes for a local business Monday night.
Portland City Council members discussed bonding for the remaining work at Hudson Family Park, and voted to send a tax abatement request from Tyson Foods to the Portland Tax Abatement Advisory Committee. The tax abatement would create 27 new jobs.
Greg Guerrettaz of Financial Solutions Group gave council members an overview of bonding.
"The (financial) health of the city of Portland ... does look quite well," he said.
He said the city could probably get an interest rate of about 4 percent, if the bond is backed up with property taxes. He said the bonds would be paid back over a period of 20 years, depending on the amount of the bonds.
Guerrettaz suggested that the city bond for no more than $1,975,000, depending on the bid amounts for the park project. Bid letting for the project has not yet begun.
The city's cash on hand - which could be made up of a combination of Portland Economic Development Income Tax Funds, public safety funds and general funds - could be used to reduce the bond amount. However, he suggested that no more than $200,000 be used, just in case the city has trouble paying back bonds in the future.
Property tax caps and "circuit breakers" could affect the city's finances in the future, Guerrettaz said.
"You're not rich by any stretch of the imagination, but you do have some resources to get this done," Guerrettaz said.
Portland Mayor Bruce Hosier has said at previous city meetings that the bonding will not increase taxes.
Guerrettaz added that the city could bond enough to not only cover the cost of the park project, but also account for some of the funding for a new pool.
He said the bond could be broken into two parts, with deadlines for the funding to be used. Part A would be for the Hudson Family Park work, and part B could be used later for the pool.
Earlier on Monday, Portland Park Board members voted to issue bonds on an accelerated schedule, with the bonding projected to close on June 29, compared to Aug. 17. To accelerate the process, the park board will have some extra meetings on the bonding. The next step in the bonding process is to have a public hearing May 3 at 6 p.m. The council will make the final decision on the bonding.
The city also has bonds for the Tax Increment Financing District for the Industrial Park Drive widening project. The two bonds total $1,910,000. One is for 15 years, and the other is for 12 years. The city started paying on one of the bonds last year, and payments on the other will begin in 2013. Guerrettaz said the city is in good financial shape in terms of repayment of those bonds.
In other business, council members heard a five-year tax abatement request for Tyson Foods for a new product line.
Tyson plans to purchase $940,000 in equipment for a new baked corn tortilla line. The new line will create 27 additional jobs, with salaries totaling $756,000. Council members voted to send the request to the tax abatement advisory committee for review.
In a related matter, council members approved a 5-year tax abatement request for F.C.C. (Indiana) Inc.
The abatement is on the purchase of $6,427,000 in equipment for a new product line. The addition will retain 484 employees.
The council approved the request based on the favorable recommendation of the tax abatement advisory committee.
Tax abatements phase-in property taxes on new investments over a period of years.
Also Monday, council members:
•Voted to transfer $200,000 in Portland Economic Development Income Tax funds and $39,500 in rainy day funds to an account for the purchase of 58.87 acres of land in the industrial park area.
Portland Economic Development Corporation officials plan to bid on the property during an auction on Thursday. The land previously was owned by the PEDC but sold to Glynn and Julie Barber for the now defunct X-PLEX Extreme Competition Park. The land is being sold as part of a settlement in a civil suit between the Barbers and two contractors who worked on the project.
•Voted to accept the updated pages to the city's ordinance book. The pages include changes made last year to the city's code of ordinances.
•Learned that Municipal Government Week will be celebrated in Portland during the week of May 10-15. The annual free community cookout will be held May 11 behind city hall. The time of the event will be announced at a later date.[[In-content Ad]]
Portland City Council members discussed bonding for the remaining work at Hudson Family Park, and voted to send a tax abatement request from Tyson Foods to the Portland Tax Abatement Advisory Committee. The tax abatement would create 27 new jobs.
Greg Guerrettaz of Financial Solutions Group gave council members an overview of bonding.
"The (financial) health of the city of Portland ... does look quite well," he said.
He said the city could probably get an interest rate of about 4 percent, if the bond is backed up with property taxes. He said the bonds would be paid back over a period of 20 years, depending on the amount of the bonds.
Guerrettaz suggested that the city bond for no more than $1,975,000, depending on the bid amounts for the park project. Bid letting for the project has not yet begun.
The city's cash on hand - which could be made up of a combination of Portland Economic Development Income Tax Funds, public safety funds and general funds - could be used to reduce the bond amount. However, he suggested that no more than $200,000 be used, just in case the city has trouble paying back bonds in the future.
Property tax caps and "circuit breakers" could affect the city's finances in the future, Guerrettaz said.
"You're not rich by any stretch of the imagination, but you do have some resources to get this done," Guerrettaz said.
Portland Mayor Bruce Hosier has said at previous city meetings that the bonding will not increase taxes.
Guerrettaz added that the city could bond enough to not only cover the cost of the park project, but also account for some of the funding for a new pool.
He said the bond could be broken into two parts, with deadlines for the funding to be used. Part A would be for the Hudson Family Park work, and part B could be used later for the pool.
Earlier on Monday, Portland Park Board members voted to issue bonds on an accelerated schedule, with the bonding projected to close on June 29, compared to Aug. 17. To accelerate the process, the park board will have some extra meetings on the bonding. The next step in the bonding process is to have a public hearing May 3 at 6 p.m. The council will make the final decision on the bonding.
The city also has bonds for the Tax Increment Financing District for the Industrial Park Drive widening project. The two bonds total $1,910,000. One is for 15 years, and the other is for 12 years. The city started paying on one of the bonds last year, and payments on the other will begin in 2013. Guerrettaz said the city is in good financial shape in terms of repayment of those bonds.
In other business, council members heard a five-year tax abatement request for Tyson Foods for a new product line.
Tyson plans to purchase $940,000 in equipment for a new baked corn tortilla line. The new line will create 27 additional jobs, with salaries totaling $756,000. Council members voted to send the request to the tax abatement advisory committee for review.
In a related matter, council members approved a 5-year tax abatement request for F.C.C. (Indiana) Inc.
The abatement is on the purchase of $6,427,000 in equipment for a new product line. The addition will retain 484 employees.
The council approved the request based on the favorable recommendation of the tax abatement advisory committee.
Tax abatements phase-in property taxes on new investments over a period of years.
Also Monday, council members:
•Voted to transfer $200,000 in Portland Economic Development Income Tax funds and $39,500 in rainy day funds to an account for the purchase of 58.87 acres of land in the industrial park area.
Portland Economic Development Corporation officials plan to bid on the property during an auction on Thursday. The land previously was owned by the PEDC but sold to Glynn and Julie Barber for the now defunct X-PLEX Extreme Competition Park. The land is being sold as part of a settlement in a civil suit between the Barbers and two contractors who worked on the project.
•Voted to accept the updated pages to the city's ordinance book. The pages include changes made last year to the city's code of ordinances.
•Learned that Municipal Government Week will be celebrated in Portland during the week of May 10-15. The annual free community cookout will be held May 11 behind city hall. The time of the event will be announced at a later date.[[In-content Ad]]
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