Chesterton Tribune

 

 

Council to hold public hearing Tuesday on $1.5M bond issue

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The Chesterton Town Council will meet at 7 p.m. Tuesday, May 27, one day later than its normal meeting date, which falls this year on Memorial Day.

At Tuesday’s meeting, members will hold a public hearing on a proposed issue of $1.5 million in general obligation bonds, revenues from which would be used to finance a package of re-paving projects.

The bond sale will work this way:

* The Porter County Treasurer’s Office will purchase the bonds, at an interest rate of 2 percent over five years.

* Under Indiana Code, the town must nevertheless still hold a sale, at which it is only just barely conceivable that some other lender might offer a lower rate of interest than 2 percent.

* Of the $1.5 million, $500,000 or so will be used to re-pave roads in the tax increment financing district or otherwise connected to roads in the TIF district. Those jobs will accordingly qualify as TIF projects and the Redevelopment Commission will pay for that work with TIF moneys.

* Chesterton property taxpayers in general will be on the hook for the balance of $1 million. Town Attorney Chuck Lukmann has estimated that the owner of a homestead valued at $200,000 will pay $32.45 more per year over the bonds’ five-year lifetime. The owner of a commercial property valued at $100,000 will pay $32.20 more per year.

Members opted to pursue a bond sale to finance large-scale re-paving after this past winter’s savagery left the town’s roads potholed and crumbling.

In other business on Tuesday, the council is likely to adopt a series of written orders issued by the Advisory Plan Commission, serving to amend the original economic development plans for the town’s three TIF districts. Each of those orders is identical, merely making the installation of fiber-optic conduit a TIF-eligible project.

Redevelopment Commission

The Redevelopment Commission will meet earlier in the evening on Tuesday, at 6:30 p.m.

Members will hear updates on ongoing projects, among them the Dickinson Road extension, the Indian Boundary Road traffic signal upgrade, and the fiber-optic infrastructure.

 

Posted 5/23/2014