HUBER HEIGHTS — Last Monday night, the Huber Heights City Council heard the first reading of an ordinance issuing notes in the principal amount not to exceed $2.128 million plus the cost of issuance in anticipation of the issuance of bonds or other long term financing related to improving public streets and easements related to the Red Buckeye Road area.
At that time, Council voted 5-1 to waive the second and third readings, with Council member Tyler Starline voting no. Since the legislation had an emergency clause, there were not enough votes to waive, hence no vote was taken to adopt. Starline said he previously indicated that he thought that the Carriage Trail development supplementation through the amendments to the development agreement should be self sufficient at this point and “that at this point we should be taking it to zero —the TIF portion out of the city rather than supplementing a portion of that and had indicated that I would prefer that we go that route.”
Council met in special session Monday night to hear the second reading and did vote 6-1 to waive the third reading and adopt the ordinance. Assistant City Manager Don Jones told the Courier that waiting until the next scheduled meeting on Dec. 14 would not allow sufficient time to price the notes prior to the Federal Open Market Committee (FED) meeting on Dec. 16. He said many analysts expect an interest rate increase to be approved at the FED meeting and a delay on the part of the city could put the city at risk of higher interest rates resulting from that meeting. He indicated that a half percent increase would cost the city an additional $10,640 in interest over the next several years.
There was also a question of issuing two separate notes, but Jones said the city saves $9,301 by issuing one note for the entire amount. He also indicated the city would save approximately $6,495 in interest by issuing one note instead of two notes.
In a memo to Council, Jones said that as these notes mature and the projects are finalized, it is the intent to issue long term bonds or other financing at that time, based on market conditions that exist at that time. He said the funds will be used for the public infrastructure projects recently approved by City Council.
Jones indicated that the first project is the construction of the Red Buckeye Road and related public infrastructure in Carriage Trails. He indicated the city has agreed to fund up to $1.35 million toward this project to be paid back by the land owners thru agreed to special assessments.
The second project is to fund a portion of the public infrastructure to be installed in Sections 3 Phase II, 4 Phase IV, and 12 Phase III. The city has agreed to provide $199,000 which will be paid back by the property owners thru special assessments and $579,000 in TIF funds to be paid back by a portion of the TIF funds generated by the project. The total special assessments portion of this issue is therefore $1,549,000 and the other TIF portion of this issue is $579,000.
Reach Greg Smart at 937-684-8088 or on Twitter @ HH_Courier.com