A backlog of long-overdue infrastructure improvements has the city of Galesburg consider borrowing millions of money to try and catch up on the workload.
City Manager Todd Thompson presented the City Council with a proposal to bond for more than $10-million. The list of projects that would be completed include:
- Armory Design/Construction - $3,450,000
- East Fremont Street Resurfacing - $1,251,000
- Seminary Street Reconstruction - $2,249,000
Thompson said several brick streets would also be repaired. He said it would take about three years to complete the list of projects. The borrowing would occur next year.
Thompson said it makes more sense to borrow the money because the bond would carry a low interest rate, compared to relying on the road use tax revenues the city uses for infrastructure now.
“You have $750,000 a year to fund projects, you have $10 million dollars of projects to do, if you take it year-by-year, it’ll take you 10 years to get them done,” Thompson said.
Aldermen seemed to support the $10-million bond. It would cost the city about $4-million in interest over the life of the 20-year note.
Thompson said the recently-approved capital utility tax, which goes into effect next year, would generate enough money to pay off the bond.
“The payment on $10 million dollars in bonds will be about a third of the capital utility tax, and that’s what the original proposal was,” Thompson said.
The capital utility tax is estimated to raise around $2.25 million each year.
