The City Council this week approved a plan to inject nearly $4 million into the capital improvements fund by refinancing about $6.3 million in 1992 general obligation bonds, saving about $370,000 in interest costs, and issuing $3.45 million in new bonds.
The capital improvements fund, which finances roadwork and maintenance of the sewer and water systems, could be out of money by 2005 without an infusion of cash, Finance Director Marilyn Gaston told the Finance, Council Affairs and Administrative Services Committee last week. She blamed the cash crunch on declining sales-tax revenue and the census-based reduction of the city’s share of state income-tax proceeds. Without the bond issue, money for maintenance projects would have to come from the general fund, which also is shrinking due to lower sales tax and state income-tax revenues.
The combined bond issue will be paid off in 2021.
