City council to consider borrowing $16 million

By MARCIA NELESEN ( Contact )   Saturday, Oct. 10, 2009
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On the agenda


The Janesville City Council will meet at 7 p.m. Monday in City Hall, 18 N. Jackson St.

An informal listening session with council members in conjunction with a Youth In City Government gathering will be held at 6 p.m. Residents who want to speak to council members at the beginning of the meeting must sign up.

Items on the agenda include:

--A resolution supporting universal access to quality health care to demonstrate the council’s support to Wisconsin’s Congressional delegation.

--A public hearing on a request from the Gazette to start regularly scheduled council meetings at 6:30 p.m. rather than 7 p.m. The newspaper recently started publishing a morning paper, and an earlier start could give reporters more time to file more complete stories for the next day's paper. Making a change would require a super majority of at least five council members because the meeting start time is set by charter ordinance.

--A presentation from the Janesville Shade Tree Advisory Committee concerning Janesville’s urban forest.

--Permission for Forward Janesville to erect a mural depicting historic Janesville on the backside of City Hall.

--A request from Rotary Gardens to modify its lease agreement with the city to reflect the current independent management of the gardens. The lease, for instance, would allow the gardens to make improvements and changes and establish rules and procedures without prior council approval. The lease also would include the recent decision to charge a fee to enter the gardens, including for anyone wishing to fish in the lagoon from gardens property. The lease would reflect the fact that now the gardens would not offer restrooms to the public. The board must continue to inform the council of any changes. The city manager recommends making the changes.

— Payments on city debt would rise in 2010 if the Janesville City Council decides to borrow for three projects the city manager recommended be cut.

City Manager Eric Levitt had suggested deleting $2.5 million in funding for the ice arena, a new central fire station and the purchase of dilapidated properties in older neighborhoods.

With Levitt’s recommended cuts, the city’s payments on debt would drop.

But at a recent study session, council members added back:

-- $1 million to either repair the city ice arena or build a new one.

-- $500,000 to buy dilapidated properties.

-- $1 million to replace Fire Station No. 1 on Milton Avenue.

If those projects are not included in the borrowing, general fund debt service in 2010 would drop about $86,000.

If the projects are included, general fund debt service would increase $225,772. The owner of an average home assessed at $113,800 would pay an additional $7.38 in property taxes for debt service next year.

The council Monday night will consider the borrowing but not give final approval until Monday, Oct. 26.

No public hearings are scheduled, but residents can speak on the borrowing at the beginning of the meetings.

The 2009 borrowing note of $16.4 million is larger than previous years.

Of the $16.4 million, about $9 million will be repaid with property tax dollars through the general fund. The general fund borrowing includes about $5.3 million for projects already authorized, Jay Winzenz, assistant city manager, wrote in a memo. For example, $2.9 million in borrowing is for a new downtown parking ramp, which is already under construction.

Other sources of repayment include special assessments, water utility fees, wastewater utility fees, tax incremental financing districts, the sanitation fund, Hedberg Public Library and storm water utility fees.

Also included in the note issue are:

--About $2 million to build and improve streets. This includes $280,000 to repair and replace sidewalks; $610,000 for curb and gutter; $800,000 for street maintenance and improvements; and $945,000 for other infrastructure improvements, including repair from the 2008 flood, East Riverwall repairs, manhole repairs and erosion in the Highridge subdivision.

--About $1.5 million for parks and public grounds, including $35,000 to improve Harmony Grove Park, $332,000 in flood repair; $98,000 to buy and demolish a property at 337 N. Franklin St.; $500,000 to buy vacant and blighted properties in older residential neighborhoods and the downtown; and $500,000 for the Youth Sports Complex to develop softball and baseball fields in conjunction with Janesville Youth Baseball.

--$5.5 million for public buildings and grounds, including $250,000 to maintain city buildings; $1.15 million to repair the existing ice arena or for a new facility; $2.9 million for the downtown ramp; $250,000 in repairs to the Tallman House; $1 million for a new central fire station, funding for which will be phased over several years. Estimated cost is $7 million. A construction date is not set.

--$1.2 million for equipment, including $600,000 to improve information technology updates, including billing software; $350,000 in technology enhancements at Hedberg Public Library; $65,000 to replace mobile radios in police vehicles and $230,00 for fire vehicles.

--$1.75 million to build a new landfill and maintain the current landfills.

--$2 million to build and extend water mains.

--$615,000 to build and extend sewer mains.

--$1.5 million for TIF development loans.

Funding that has been removed include $195,000 for a bike trail underpass; $50,000 to help a private group raise funds for a skate park; $515,000 for a bike trail from Janesville to Beloit; and $325,000 to improve Rockport Pool.







reader COMMENTS (40)
PanamaRed
Oct 13, 2009 at 2:49 p.m.
Suggest removal

Ok Pete, we get that you don't like taxes. Tell everyone then, how should our local government generate revenue to pay for the upkeep of our infrastructure? Should we only spend the bare minimum on maintenance? Cities all across the US have been doing that for decades and now face huge expenses to replace sewer & water lines, power plants & related equp., roads, bridges, etc. all because they didn't spend the money to maintain what they already had. Its much more expensive to build a new ice rink than to spend the money necessary to maintain the rink we have. Or combine what we would have spent on maint. with private funds to construct a new arena. How do you expect Janesville to attract ANY new businesses unless we maintain both the city and leisure services we already have. To decide whether to fund a particular project based ONLY on the expense is foolish. There is a cost/benefit ratio associated with all expenditures. Many individuals that live and work in the surrounding area value the parks, golf courses, bike trails, ice arena and other recreational opportunities available in Janesville. Area businesses (and local govt. coffers) profit from those who come here to shop and play. With interest rates at all time lows, NOW is a perfect time to invest in our future. It matters more that our government spends wisely and invests in the future of Janesville. Not setting aside money NOW to make the necessary repairs on existing infrastructure will only cost us MORE later. Cuts in funding for current facilities will NOT increase our standard of living but serves only to reduce our standard of living. These are not "pie in the sky" projects under consideration by the city council but legitimate future investments.

PanamaRed
Oct 13, 2009 at 1:34 p.m.
Suggest removal

Hey Pete, whats the number for the pizza place down the street, I'm getting hungry!

kiowamohican
Oct 13, 2009 at 2:12 a.m.
Suggest removal

Yes; I know how bonds work. 15% would be the total amount paid in interest then, and not the actual interest rate. I was going to say if they were paying a 15% rate (as in annually) they have lost their mind in this city, even worse then I have suspected. Do you know how long that $2.4 million in interest is over (the maturity of the $16 million in bonds sold)?

kiowamohican
Oct 12, 2009 at 6 p.m.
Suggest removal

Pete:
They are really borrowing this $$ at a 15% interest rate? What kind of a credit rating does this city have? My God, they would probably be turned down for a Sears card if that is really the case!

IvoteIspeak
Oct 12, 2009 at 12:08 p.m.
Suggest removal

janesvillean must be one of the members of the city council. Quality of life this quality of life that. You are obviously trying to justify spending money we dont have. In your private life you must be so far in debt so that you can justify the quality of life you live. If you dont have the money to spend then dont spend it. I think maybe the city should call Suzie Orman to see if they are approved or denied.

outdoors
Oct 12, 2009 at 8:42 a.m.
Suggest removal

So city employees are asked to turn down cost-of-living (that was bargained for)because the city is in financial crisis. Oh wait, projects are not being cut, I guess they have the money after all.

kiowamohican
Oct 12, 2009 at 2:19 a.m.
Suggest removal

Tax increases are working so well in other places. Just look at places like Detroit, LA, NYC, Chicago.. Un-employmnet explodes, home foreclosures sky rocket, property values sink by the day, and finally people just vacate the area in mass numbers. Of course when that happens, your tax base just shrinks even more, and then the wizzards of smarts will propose raising taxes even higher on those remaining.
.
Janesville is just THRIVING..We have what is it now...15% unemploymnet? 5% higher then the national average. Yeah; lets just hike the taxes up. It's such a proven economic winner everywhere it's tried. Heck; maybe we can then hit depression levels. Get unemploymnet up to 25-30%. We really have some economic geniuses running things here!

Zoom
Oct 11, 2009 at 8:39 p.m.
Suggest removal

If the Council isn't going to take the City Managers advice, what's the point of paying for a City Manager?

someoneme
Oct 11, 2009 at 8:15 p.m.
Suggest removal

Well I read all of the article and the comments. I picked up the phone and called Yuri. He answered and listened to my opinion and views very nicely. I suggest more do the same.

whoanellie
Oct 11, 2009 at 5:45 p.m.
Suggest removal

I am so outraged by this!! I will be calling all of these numbers and voicing my concern! Who do these council members think they are???? It is my money they are dealing with I am stretched as it is and I don't need anymore taxes!! When are the next elections for the council?? Let's vote all of them out this time. what were you people thinking that voted these guys right back in?? Get them out!!!!

janesvillean
Oct 11, 2009 at 11:18 a.m.
Suggest removal

I suggest that people call the numbers Pete has listed and ask council members whether Pete's fears of a doubling of taxes in five years are realistic. More likely, they will say they are doing everything possible to balance Janesville's quality of life and level of services in an environment of lower tax revenues and state allocations at a cost that Janesville residents can bear. It is not an easy task, and every one of those items, no matter how much someone like Pete sees them only as a price tag, has a constituency of supporters in the city. Those people are also calling the council.

IvoteIspeak
Oct 11, 2009 at 10:38 a.m.
Suggest removal

Here we go again, its only another $7.38 here and $7.38 there. Now add them all together. Hundreds here and hundreds there now add them all together. Thousands here and thousands there. The madness needs to stop. Please city buy my house so that I can get the hell out of here.

NeuroMed
Oct 11, 2009 at 9:26 a.m.
Suggest removal

Janesville City Council has always been out of touch with reality. Now the Ice Arena and youth baseball fields are somehow more or equally important as the fire station and public services like trash pickup?? Ridiculous.

bobwood
Oct 11, 2009 at 9:11 a.m.
Suggest removal

"No public hearings are scheduled, but residents can speak on the borrowing at the beginning of the meetings."
The city council has made it clear to the public , they do not care what we want .Thanks for nothing !!!!!!!!!!!!!!!!!!!!!!!!

jjjammer4545
Oct 11, 2009 at 8:27 a.m.
Suggest removal

Pete: I think your math is a little fuzzy.

Devilsadvocate
Oct 11, 2009 at 12:36 a.m.
Suggest removal

Janesville needs to stop borrowing and instead cut spending. The same thing families have to do. Endless borrowing and kicking up the tax bill is a prescription for failure.

musiclastsalifetime
Oct 10, 2009 at 10:47 p.m.
Suggest removal

7 Million for a firehouse? Sorry, that's obscured for a just a building. One third of the Parks budget for youth baseball? And I thought the school district was out of touch.

SarahB1
Oct 10, 2009 at 10:03 p.m.
Suggest removal

Why no public restrooms at Rotary Gardens?

janesvillemom
Oct 10, 2009 at 9:47 p.m.
Suggest removal

The only upside of borrowing now is that interest rates are low. If it is a NEED now or in the near future, then borrow now. If it is a "want" then cancel it until this community sees what the real fallout of GM will be (once the severance, unemployment and education money runs out).

BBB
Oct 10, 2009 at 9:29 p.m.
Suggest removal

The ice arena should be closed as it is poorly managed & taken care of like the Tallman house, which should be given back to who ever gave it to the city.

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