Wyoming will issue $2.5 million in bonds for bank, city hall project
Council vote is 4-1 with Linda Yeager opposed
The Wyoming City Council on Tuesday night, June 26 approved an amendment to its five-year capital improvement plan to issue $2.5 million in general obligation capital improvement bonds to finance the purchase the RiverBank building, renovate it as a city hall and fund construction at the current city hall site, which will will become a public safety center.
At least 80 residents attended the public hearing, which lasted three hours. Many were opposed to the plan because of the tax impact. One difference at this meeting involved more individuals speaking in favor of the plan.
The plan is to finance bonds over a 20-year period with an projected interest rate at about 2.779 percent. The $2.5 million will add some $50 a year in city property taxes on a house valued at $200,000.
Mayor Eric Peterson presented the economics of the city acting now to secure the building and expanding the city hall site. The city can bond for $2.5 million at the rate of 2.779 percent and pay $3.5 million over the life of the 20-year loan.
Waiting five years would take about $6.4 million to construct what is needed at a likely interest rate of about 7 percent. The cost of that loan would be about $11.9 million over the term.
Peterson’s estimate quadrupled the tax impact in five years.
City Administrator Craig Mattson said that in a couple of years, Polaris and Xccent will be paying commercial property taxes to the city.
The vote was 4-1 in favor of the action. Council member Linda Yeager voted against the amendment, saying the current business climate is not strong. She has consistently taken the position that the city should move slower.
Peterson, and council members Roger Elmore, Joe Zerwas and Steve Zerwas all voted in favor of the bonding.
Some residents had asked for this to be a referendum issue. The city presented criteria for bonding and can move forward with the project without a vote of the people.
Residents may request a reverse referendum. To do so a petition must be submitted within 30 days, with signatures of 5 percent of the total that voted in the last election and who are registered voters.