As many of you are probably aware, the city closed the new Senior Center on Conz Street last Friday because of safety concerns related to a defective cupola. It was all over the media. There have been a host of issues reported arising from the center, from fallen truss beams to worker injuries to unfair labor practices to unfinished projects.
There was less than complete information though, when if comes to the center's funding. According to the city's finance director, Christopher Pile, the city issued a 20-year $3.91 million general obligation municipal bond at 3.88% interest. At the end of the term the city will have paid a total of $1,546,675 in interest payments to investors. To make the bond payments the city has allocated $1.41 million to the general fund for debt service and will use $2.5 million in Community Development Block Grant (CDBG) monies. Combined with the proposed new police station, the city will be paying out at least $8.5 million in interests payments for the two projects through bond issues, and the bonds for the proposed landfill expansion will be added to that. The bonds for the police station and landfill have not yet been issued so the interest rates have not yet been determined.
