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Tuesday, October 7, 2008 9:48 PM CDT
Mayor: Bond issue speeds up projects, avoids higher costs



MATTOON — Not borrowing money through general obligation bonds could push back public works projects, like south side flood control, by several years, city officials said Tuesday night.

Mattoon city commissioners on Tuesday unanimously approved seeking $10 million through bonds next month to help fund several city infrastructure projects, including new sidewalks, additional parking lots, recreational facilities, and a new public works building in addition to the south side drainage project for flood control in the Kickapoo Creek watershed, and renovations of the Cross County Mall.

The bonds, split in two series — one for $6 million for the multiple public works projects and $4 million for the mall redevelopment — will be paid off through sales taxes, including the ½ percent tax dedicated to infrastructure projects, and the new 1 percent sales tax added to retail sales since July 1 in the new Broadway Avenue East business district.

“Part of this is to do it now,” said Mayor Dave Cline during a public hearing on the bond issue. “If we wait longer we would pay more in costs.”

The public works efforts will cost more than $6 million, said Treasurer Preston Owen. For example, the cost estimate for the south side drainage Phase I work is $3 million. The new public works building plans have an estimated cost of $3 million, counting land acquisition.

“If we had to save up all the money we needed for the drainage project, we would have to wait another five years. This way we get the money now,” said Owen.

Some savings from the sales tax kicker has paid for the land acquisition already for building a water detention pond and drainage ditch near South Ninth Street and Old State Road, he added.

Planned Roundhouse Sports Complex improvements — including a new walking and running trail, new athletic fields, a skate park and expanded parking — would cost the city $400,000, which matches a state recreational land use grant. Creating a system of improved sidewalk routes, referred to as arterial walking routes, throughout the city has an estimated cost of $750,000.

The city would also partner with the YMCA to create new public parking after that recreational facility expands in the near future through its own fundraising efforts. The estimated cost for the parking for the city’s midtown would be $400,000.

Owen said the city does collect $1.2 million annually from the sales tax kicker approved by a citywide referendum five years ago. Half of that amount is used for infrastructure improvements, while the rest goes to the city general fund to provide some property tax relief.

Will the city generate enough revenue with the new 1 percent business district tax covering mall businesses as well as other retailers along much of the Broadway Avenue East corridor? It was announced Tuesday the business district sales tax there produced $24,300 during July, which averages out to $291,600 per year.

The hope is that amount of tax revenue would increase with improvements to Cross County Mall and the filling of empty retail spaces in the facility. Work on that project, which has a commitment of $500,000 from the mall owners, is expected to start next year, Owen said.

The city had set a goal of interest rates at 4 to 4.5 percent on the bond issues prior to the financial markets meltdown, Owen said. The sale is scheduled for Nov. 18, mainly due to the volatility of the financial markets.

“We do intend to issue the bonds on Nov. 18. We must spend the money within three years,” Owen said during the hearing, which drew questions only from city council members and the news media.

City residents do have the option to protest the bond issue within 30 days. It involves a petitioning process to create a public referendum early next year. Questions on a protest can be addressed to Mattoon City Hall or explained through a public notice this month in the newspaper.

Owen said he is not aware of any referendum held to fight this type of bond issue by the city. He said the bond issue is based on payments from revenues already received from the city through sales taxes. It does not depend on property taxes.

In other business, the council received only a few questions on the upcoming leaf collection program that requires residents to use 30-gallon recyclable paper yard waste bags for curbside collection by city crews. The program has eliminated the use of aging leaf vacuum units, which were sold at city auction earlier this summer.

During the discussion in the caucus room, one questioner asked if diseased plants could be burned by serious gardeners concerned with contaminating a mulch supply. Mattoon Fire Chief Mike Chism said that limited burning could be completed in fire pits as long as they do not turn into leaf-burning pits. Leaf burning has been prohibited for many years in Mattoon.

The leaf collection officially starts next week with city crews collecting leaves weekly on a rotating basis for each section of the town, Mattoon Public Works Director Dave Wortman said. He said residents can haul leaves and other yard waste to the yard waste facility this fall also. The hours are now 10 a.m. to 6 p.m. daily, but those hours will be adjusted after the time change this fall, he said.

Contact Herb Meeker at hmeeker@jg-tc.com or 238-6869.


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Mike P wrote on Oct 8, 2008 9:25 AM:

" Not spending money you dont have, on pipe dream or enduced projects, saves a lot more money. These are all new non urgent projects. Four million on a mismanaged mall, and they are only putting up 500k. New sidewalks to tif land, and a parkinglot down town. New trails and a skate park. And lets not forget their million already spent on engeneering some drainage issues into a pond. Already clearly going to cost more than 10 million, by their own admissions, but if they start on it now with pretend money its cheaper.

Common sense seems lacking so lets throw some at this and see if it sticks. What kind of accountant, takes tax numbers from a new district, for one months revenue increase, multiplies it by 12, and uses that as hard data stating it is sure to increase?

The economy is deflating. Besides its not a good time, to do these extra curricular investments, they spent the money they had in hand, that could have paid for already needed work geting done. They bought a million dollar magic bean field instead. Some genious of an engineer, thinks a several million dollar ditch and hole is going to keep flooding down. What happens when it attracts geese, the pond gets drained and it falls into disrepair and gets sold to a buddy for a huge loss. Its only tax dollars. Drainage is complex enineering, I am sure between the lot of the talking heads, they aren't up to discussing complex issues, without crib notes, and some coaching.

Get the petition moving. Figure out how to put pink slipping some folks, on a seperate one and lets get both issues on the same ballot. "

Mike P wrote on Oct 8, 2008 10:03 AM:

" We need to also think about getting the kicker petitioned for a vote again. If the folks at the city are going to spend the extra tax revenue, on magic bean fields, instead of current responsibilities, in these tough times, extra sales taxes should be dropped.

Things were strained as far as their accountings of dollars go, for a long time. Then magicly they pull out a million, to buy the land, to dig the hole, that they want to dig a ditch to, to drain the water, that keeps flooding the house, that was built in a flood plane, that jack built. Mismanaged fairy tales of fantasy spending, they lied, when they said they were broke, all summer, in not fixing existing problems. Now they want a 10 million down payment, on several new ones, and still do nothing for the old ones.

Them getting in the mix with the mismanaged mall, is bad on all fronts. either they take care of it them selves, or let them close, and a new one gets built correctly, not on tif dollars, or over taxed retail space. These taxes, will hold business back, and reduce their profitability. We are close to champaign and decatur now on taxes. If I have to be taxed that rate, I will go there to shop and eat, or to some other towns, that don't TIF and tax their sustainable growth out of existence. "

Mike P wrote on Oct 8, 2008 2:15 PM:

" This was the story herb told back in june of this year.

The City Council approved motions Tuesday for three projects tapping local, state and federal money pools.


Five years ago, city residents approved a hike in city sales taxes to provide for an infrastructure improvement fund as well as property tax relief. The council Tuesday night approved a design contract with Upchurch & Associates of Mattoon for a storm water detention basin between Stinson Avenue and Old State Road, one of several southside neighborhoods affected by flooding for decades.

The city has collected more than $1.5 million in the infrastructure fund to help pay for this major step in flood control in the Kickapoo Creek watershed. The intent of the basin is to collect or detain storm runoff to reduce the overflow in existing drainage systems. Construction could start in a matter of months, depending on completion of design plans.

In addition, the city will add two new 60-inch concrete culverts along a railroad right of way near Pine Acres and a long ditch extending from South Ninth Street for diverting storm water away from housing as well.

The estimated contract cost is $72,681 with Upchurch. This is included in the exiting capital improvement fund of the city with use of sales taxes from the .25-percent sales tax increase, approved by referendum in the spring of 2003.

The contract was approved by Mayor Pro Tem David Schilling and commissioners Randy Ervin, Rick Hall and Joe McKenzie. Mayor David Cline was absent Tuesday.

The city has plenty on its wish list with $400,000 from the Illinois Open Space Lands Acquisition and Development Program to help provide new facilities and venues in the near future at the Roundhouse Sports Complex.

The list of proposed additions for the complex include soccer fields, a skate park, a walking path, improved parking, benches, modular retaining wall and buried electrical connections. The city received the OSLAD funds through a competitive application process. "

Old Grumpy wrote on Oct 8, 2008 6:57 PM:

" Hey citizens look at the numbers:

It was announced Tuesday the business district sales tax there produced $24,300 during July, which averages out to $291,600 per year.

At this rate it will take us thirty years to pay off this debt!

The hope is that amount of tax revenue would increase with improvements to Cross County Mall and the filling of empty retail spaces in the facility.

And if it doesn't who has to pay for it?

This Council has signed away our future. Our grandchildren will be paying for these mistakes long after we are gone. People once made fun of East St. Louis for being broke but now they are talking about Mattoon. Does anyone want to make an offer on City Hall, it will be for sale soon. "

Mike P wrote on Oct 9, 2008 1:58 PM:

" At 4 percent interest, its 400k a year just for the interest on this. This is poor judgement, and ppoor accounting. Par for the course with this country club coddled lot. More debt, more responsibility, completely inept oversight and management. "

midwest girl wrote on Oct 10, 2008 6:39 AM:

" AMEN to the pink slips!!!! Where is the petition? I'll sign up! We need the big spenders ousted out of city government! "

Mike P wrote on Oct 10, 2008 10:57 AM:

" Narcissists tend to become leaders

Narcissists like to be in charge, so it stands to reason that a new study shows individuals who are overconfident about their abilities are most likely to step in as leaders, be they politicians or power brokers.
However, their initiative doesn't mean they are the best leaders. The study also found 1. narcissists don't outperform others in leadership roles.
Narcissists tend to be egotistical types who exaggerate their talents and abilities, and lack empathy for others. The researchers stress that narcissism is not the same as high self-esteem.
"A person with high self-esteem is confident and charming, but they also have a caring component and they want to develop intimacy with others," said lead researcher Amy Brunell, a psychologist at Ohio State University at Newark. "Narcissists have an inflated view of their talents and abilities and are all about themselves. They don't care as much about others."
She added, "It's not surprising that narcissists become leaders. They like power, they are egotistical, and they are usually charming and extraverted. But the problem is, they don't necessarily make better leaders."


Google Narcissists leaders, for more current articles on how our cities leadership got this messed up.

Perhaps a psych eval, needs to be part of the political and hiring process, before candidates are selected.

If this doesn't sum up much of our local, state, federal, and especially local government leaders, I don't know what does.

We need to weed out the folks on a power trip. We have a collection of prime examples, of what not to allow for in elected and appointed officials.

Evidently the paper is intimidated by these bullies, and won't do its job in verifying people are fully informed of their deeds. Its odd they took such an interest in a former mayor and others, public indescretions, but some how this lot gets to run rampant ruining the city, and increasing responsibilities and debt for taxpayers to pay off later.

Myself I would rather have a bunch of alcoholics, than a bunch of theives and liers. Idealy responsible imbibement, and city management, would be key. But if I had to pick, between ruin and a few public indescretions, I would have to lean away from ruin, every time. "

Mike P wrote on Oct 10, 2008 12:07 PM:

" Gee the thread on the devastation of city assets at lake paradise, in preperation of selling them off, sure went to the archives in a hurry. Someone must have hit the archived in a rush hot button of the day. "

 



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