City briefs         

Preparations continue for south lift station renovation

General obligation bond issue renewed

[DEC. 6, 2006]  The city has been making preparations since last spring to renovate the sewer system's south lift station and the line going to the treatment plant. Aldermen were presented an agreement to present to property owners where the new station would go and where the sewer line would cross easements.

The station would be located near the prison on prison property. The minimum 8-inch force main would mostly follow the same line as it did previously, running across the property of the Department of Corrections to Department of Natural Resources land (Madigan State Park) to Lincoln Sportsman's Club to Lincoln Lakes homeowners to the city wastewater treatment plant.

Each of the affected property owners would be approached with this agreement. City attorney Bill Bates said that this is the starting point of what could be a lengthy and costly process. There would need to be accurate legal descriptions of the properties, then permissions granted; everybody needs to agree before the city can start, he said.

Council members approved the city agreement unanimously, 9-0, with Alderman Daron Whittaker absent.

Bond issue

The council approved issuing $615,000 in general obligation bonds. The vote was eight yeses, one present, one absent.

The funds are not yet designated for use, but they would be used for capital improvement projects as those come up.

The city has been using this financial resource since the 1990s.

The bonds are paid back on a four-year schedule. They are issued through the State Bank of Lincoln.

Kevin Hyde spoke to the council to explain the federal government guidelines of how this money could be used or not used without incurring penalties. The city can actually borrow up to $10 million and qualify for tax exemption, so there is still $9,285,000 left that could be issued in 2007, Hyde said.

The funds are intended to help communities with capital development projects and not to be spent on operating expenses, Hyde said.

Federal government limitations include where the money is held and how it is spent. The city has up to three years to spend the money that they borrow. If the city can find a way to make a little interest on the money in the first three years, such as in an investment that earns 7 percent, that is permitted, but there are penalties beyond that time period.

The city has been using this money for various infrastructure improvements associated with the numerous business expansions over the last few years. It was also extended for use by Lincoln Christian College and Seminary for their bond issue.

Finance chairman Verl Prather said that this has been a great financial resource that has worked out well for the city, and he wants to keep it open. Among other potential projects, it may be needed for the Fifth Street Road project if other sources cannot be found.

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Past related article

• City briefs
  City could combine south lift station with prison lift station