WARSAW — The process of issuing general obligation bonds, not to exceed $3.9 million for the construction and equipping of Warsaw-Wayne Fire Territory Station 3 has begun. That is pending approval by the Wayne Township Advisory Board of an interlocal agreement. The bonds will not increase the city’s debt service levy.

The decision to adopt a resolution setting a public hearing was approved Monday evening, Oct. 17, by the Warsaw Common Council. The township advisory board will vote on an agreement to provide funds on an annual basis to assist with paying the bonds tonight Tuesday, Oct. 18.

The public hearing is scheduled for 7 p.m. Monday, Nov. 7, during the regular common council meeting.

Todd Samuelson, Umbaugh and Associates, and Randy Rompola with Faegre Baker Daniels Law Firm, explained the time line and financial structure.

The ultimate goal is to issue the bonds by the end of the year. Samuelson explained the necessity. He said the final payment of the 2014 bond will be made in August 2017. The Department of Local Government Finance will consider reducing the debt service levy if there is no other use. Should bonds not be issued later, the levy rate would need to be raised in 2018. Samuelson stated by issuing the bonds by the end of the year, the levy will remain steady.

He further explained the bond payment structure would be at $320,000 for 11 years. The payment the same as the 2014 general obligation bond. Based on assessed valuation, the township would be responsible for one-third of the payment and the city the remainder.

It was stressed if the township board does not agree at any point, the bond issue will not move forward.

Rompola stated waiting even one day or even two weeks would not allow the bonds to be issued by the close of the year.

There was discussion regarding continued maintenance costs, staffing and equipment. It was noted this project has been in the works since approximately 2009.

Budget Adopted

In a vote of 6-1 common council members adopted the ordinance for the 2017 appropriations and tax rate. Ron Shoemaker was against the ordinance.

Thallemer explained the ordinance sets the tax rate at $1.3818. “It is advertised high, but we can take it down,” he stated, adding cuts to the budget have already been solicited. “With line two cuts we will be under the levy, well under $1.35 and it’s safe to say we will be under $1.30,” said Thallemer. The city will have 10 days after notification by the DLGF to make the necessary cuts.

In other budget related matters the council voted unanimously to approve the general salary ordinance and fire territory salary ordinance. The salary ordinance for elected officials was once again tabled.

During other business councilmen approved an amendment to the employee personnel policy handbook for code of ethics and on emergency closings. They also approved the transfer of funds totaling $16,500 from three funds within the street department’s budget into the street equipment fund. The money will be used to purchase a used tandem dump truck.

Members of the Eisenhower Elementary School Student Council were present for a portion of the meeting to observe the handling of city business.