Baldwin City Council authorizes temporary funding for new public works building

The Baldwin City Council authorized by a 2-1 vote Monday the sale of $2.9 million in temporary notes for construction of a new public works building.

The action follows the Council’s decision in October to move forward with the project. The facility is to be built in the northeast corner of the city’s Orange Street yard and will replace its current headquarters and yard in the 600 block of High Street.

Representatives of Springsted Financial on hand for Monday’s meeting said the temporary notes would eventually be refinanced with long-term bonds. The $2.9 million authorized was less than the $3.2 million approved in the council’s October action because cost estimates for the facility’s contraction have been further refined, the council was told.

Although the bonds used to finance the project will be general obligation bonds, meaning they are backed by all city revenues, the debt is to be retired through utility rate revenue. No referendum will be needed for the city to issue the bonds because debt retirement will not require a dedicated mill levy or sales tax.

In October, Baldwin City financial director Brad Smith said it would take about $218,000 a year to retire the debt, which would be split between the city’s electrical, water and sewer departments. The debt retirement was either factored into rates or to be considered in utility rate studies now underway, he said.

It was concern about what she called “unanswered questions” regarding the project’s consequences on utility rates that caused Councilwoman Kathy Gerstner to vote against the authorization.

“I have nothing against the project,” she said after the meeting. “I think it’s needed. I don’t think this is the right time, and there’s some questions that need to be answered.”

Voting yes were Councilmen Tony Brown and David Simmons. Councilwoman Christi Darnell abstained, and Councilman Steve Bauer was absent.

City Administrator Glenn Rodden said Lawrence architect Jay Zimmerschied was working to finalize final construction plans. He anticipated the project would be ready to bid by late winter with construction starting in the late spring 2017.

In other business, the council:

• Approved an ordinance that will have the Council meet on the first and third Tuesday of every month instead of its current schedule of the first and third Monday. The change will end the Council’s conflict with the Baldwin school board, which meets on the third Monday of each month.

• Approved a 2017 contract with Douglas County Corrections to house Baldwin City inmates in the Douglas County Jail at the rate of $77.12 per day. That was an increase of $3.67 from in 2016, Smith said.