[AUG. 11, 2005] Last week the city of Lincoln and Logan County
officials were faced with one more glitch in finance plans for the
Robert's Sysco Foods project. It was discovered that the tax-free
debt certificates will not be tax-free but will cost the two
entities $110,000 more than anticipated.
The hitch is not one to cause question about following through with
the project as agreed. Like city treasurer Less Plotner said,
quoting an unknown source, "If you want the rainbow, you have to put
up with the rain." The city and the county will each need to decide
how to come up with the extra funds or how to handle the changes in
financing.
Last week city attorney Bill Bates laid out the options. He said
you can come up with more funds, stretch out payments or possibly
change the Sysco contract in such a way as to avoid the application
of the tax.
This week Bates said he has learned that the third option
probably wouldn't work, as there are factors of doing business with
a private entity that won't change the taxable status. The city
could extend the payments, but the county does not have that option.
Plotner came forward and made some observations on city finances.
He said that if an ordinance slated to come before the council next
week passes, they will have $22,500 of the $30,000 that is needed.
He recommended a couple of months ago that the council consider
increasing the simplified municipal telecommunications tax from 3
percent to 6 percent. That will double the revenues. Those funds
would be available for any use, Plotner said.
He has also observed steady gains on income taxes. They are up 30
percent over last year. This year's increase exceeds the loosely
estimated $50,000 increase that was anticipated last year. If the
increase continues on the present trend, Plotner anticipates that
those revenues could jump to over $1.3 million next year.
Those income revenues can be used only on infrastructure, and
that's what they would be for, he said.
The city's share of the project is $300,000. The county is in for
$900,000.
The city is planning to pay $30,000 upfront.
Property acquisitions continue
While the largest land purchases for the project have been
completed, there is still one purchase and a transfer of ownership
to transpire.
Five-plus acres in two tracts will be purchased for $45,712.50.
One piece will be used to extend Madigan Drive. The other tract will
continue to be a detention area that already exists along Connolley
Road. By using that ground it will save an estimated $100,000 in
excavating costs. That purchase is already in process, with
intentions to be closed on by Sept. 15, Bates said.
An undisclosed donor is giving 9½ acres that will be used to
develop Heitmann Drive and add storm water drainage to the detention
area. The owner originally paid $13,500 per acre for the property
that is being given, Bates said.
Many processes involved in developing infrastructure to the site
will take place in the coming months before the project construction
reaches full swing.
