MASON CITY – The city has a chuck of debt expiring, and it is wasting no time in taking out new debt to cover projects such as new downtown light lights and airport improvements.
During the FY 2015 budget session, the city council approved the FY 2015-19 Capital Improvements Plan. Included in the plan were projects to be funded with $6,200,000 General Obligation Essential Corporate Purpose Bonds (ECP) and $700,000 General Corporate Purpose Bonds (GCP). Since some of these projects are in the beginning stages, the City will need to issue bonds to cover the costs. The following is a list of projects set for funding with bonds.
Project Name, Projected Cost
Essential Corporate Purpose
Police
In-car computers $22,000
In-car video $17,700
Portable radios $12,500
Battery back up replacement $6,250
Fire
Confined space monitor $5,000
Airport
Rehab runway lighting $117,500
Support road rehab $61,500
Cemetery
Cremation garden $30,000
New burial section $17,000
Street
Blue Zones trail project $1,800,000
Downtown street light replacement $815,000
Water
South Federal tank rehab $2,550,000
Remote radio read meters $250,000
Snow blade $5,500
Water main replacement $300,000
Estimated note issuance costs $117,900
Contingency for not to exceed $72,150
Total ECP $6,200,000
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General Corporate Purpose
Police
Building security $27,000
Fire
Building upgrades $22,000
Inspections
City Hall boiler $95,000
HVAC system retrofit $55,000
Library
Solar energy project $385,000
Cemetery
Carport remodel $5,000
Estimated note issuance costs $16,600
Contingency for not to exceed $94,400
Total GCP $700,000
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Total ECP & GCP Bonds $6,900,000
The estimated increase in debt service levy to fund these projects is approximately $0.20/$1,000 of valuation. However, the City will have debt removed from the books and that will have a reduction of approximately $0.30/$1,000. Overall, the homeowner should see a minimal decrease in debt service levy taxes in FY 2016.
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