Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, October 26, 1994 TAG: 9410270029
SECTION: CURRENT PAGE: NRV-2 EDITION: NEW RIVER VALLEY
SOURCE: RICK LINDQUIST STAFF WRITER
DATELINE: RADFORD LENGTH: Medium
Following a budget work session Monday night, City Council agreed unanimously to let City Manager Robert Asbury seek money for four high-priority city projects through the newly announced $100 million NationsBank Virginia Pool Loan Program. The city hopes to take advantage of the fund's low-interest rates.
Projects on the list include $1.5 million for sewer system improvements, $1 million to correct sanitary sewer infiltration and inflow problems from leaks and storm water, $2.5 million to repair and upgrade the city's water treatment plant and $1 million for school building maintenance and repairs. Tuesday, Starnes called the $6 million "a ballpark figure" that could change.
If the city goes ahead with the borrowing plan, its long-term debt - now approximately $7.3 million - would nearly double. By law, the city may borrow up to $37.9 million. Council did not discuss how the money would be repaid, but revenue bonds, which would be part of the borrowing mix, often are retired through higher utility rates. Earlier this month, Asbury recommended pursuing a revenue bond issue for the water plant repairs that would be paid back through slightly higher water rates.
Money for the loan pool, which the city learned about only a week ago, would come from a tax-exempt, variable-rate bond issue sold through the Louisa County Industrial Development Authority and secured by NationsBank.
Interest would be about 4 percent, and the money would be paid back over 20 years. Asbury said conventional bond issue interest rates are 51/2 percent to 61/4 percent.
School officials told council not to expect any leftover dollars from its 1993-94 budget to pay for projects that include new roofs for the high school gymnasium and McHarg Elementary School. Superintendent Michael Wright told city officials that any unspent money would go for improvements required under the Americans with Disabilities Act. The cost of that work, originally estimated at $50,000, has mushroomed to more than $150,000.
Asbury also prompted Wright and School Board Chairman Guy Gentry to plan now for any additions to the city's overcrowded elementary schools. "This situation should not become crisis management," he said.
Gentry said the School Board already is anticipating building projects. "A lot of the things we're looking at are enrollment-driven," he said, citing an estimated $700,000 to get Radford High School's east wing "back up to speed."
City Sewer and Water Superintendent Jettie Montgomery said after the meeting that reducing the amount of unwanted water getting into the city's sanitary sewers through leaks and existing connections with storm sewers eventually could pay for itself in lower treatment plant bills. Montgomery said $1 million could make a substantial dent in the problem.
Other capital project possibilities council contemplated included constructing a new recreation building and converting the existing recreation building into a public safety building.
Councilman David Worrell also asked about a new fire station in the city's East End. Asbury said the city is exploring a joint fire station project with Radford University. Other projects still in the wings include improvements to the city's court facilities.
by CNB