This year's sale of $7.3 million in street bonds will continue to allow the city to pursue construction projects into 2013.
The Marshalltown City Council approved the street financial report at its Monday night meeting.
Lori Stansberry, finance director, said the city plans to sell an additional $5 million in bonds at the beginning of 2013 to continue much-needed road work.
T-R PHOTO BY DAVID ALEXANDER
More than $7.3 million in bond sales paid for several road construction projects, like this one on Madison Street, shown here Tuesday afternoon, in 2011. The council approved the road use financial report at its Monday night meeting, and will see a resolution to approve the sale of another $5 million in bonds to continue road work in early 2013.
Earlier this year, the city sold six general obligation bonds to pay for street work ranging from rebuilds of Olive and Madison Streets to extensive mill and overlay and microsurfacing, which, because of weather restrictions, has been pushed back until 2013.
"It would be like if you borrowed X amount of money and wanted to do four projects around your house, this would be the money that you borrowed," Stansberry said of the bonds that fund the road projects.
Typically, said Lynn Couch, public works director, the city allocates around $500,000 a year for road repairs. By spending nearly $12.5 million, as opposed to $1 million, between 2012 and 2013, he said the city could get on top of major repairs and focus on maintenance moving forward.
"We are just barely scratching the surface," he said of the road repairs. "This will get us in really good shape."
Several projects paid for with this year's bonds will spill over into next year, and, according to the street financial report for fiscal year ending in June, a little more than $8.2 million will carry over into 2013.
Couch said repairs in 2013 would be mostly minor. However, the one major project will be four-block stretch of South Third Avenue near Olive Street.
According to the financial report, the city paid $2.3 million out of the road-use tax fund and $4.1 million out of local option sales tax for capital improvements in the fiscal year ending June.
To cover the cost of project mandates by Iowa Department of Natural Resources, the city will also consider an increase to sanitary sewer rates at an upcoming council meeting. The amount of the increase is still undetermined.
"We are re-aligning some stuff to try and get the projection down," Stansberry said.