August 30, 2004

Clinton bond sale scrutinized

  • Couple working to force referendum on issue

    By Sylvain Metz
    smetz@clarionledger.com
     
    Payment

    The city of Clinton plans to sell $7.75 million in general obligation bonds to be repaid during a 20-year period. A portion of those payments will be balloon payments, Ward 4 Alderman Phil Fisher said.
    Broken down, they look like this:
     
  • Year 1 $387,500
     
  • Year 2 $472,500
     
  • Year 3 $513,500
     
  • Year 4 $626,750
     
  • Years 5-16 $664,500
     
  • Years 17-20 $720,000

     
  • The city of Clinton's decision to sell $7.75 million in bonds for public improvements is being met with protest, a reaction an expert says is rare.

    Mary and Scot Welch are leading a petition drive to bring the bond sale to a vote, not because they oppose the proposed improvements, but because they say there's been too little debate.

    After all, "$7.75 million is a lot of money," Mary Welch said.

    Unlike school bonds that require a referendum and 60 percent voter approval to pass, bonds sold by a county or municipality include a "reverse referendum clause," which means that once notice is given, residents have 30 days to organize a protest, said Demery Grubbs, a financial adviser whose firm is handling the bond sale.

    Fifteen percent, or 1,500 qualified voters, must sign a petition by Sept. 21 to force the issue to a referendum; otherwise, Clinton can proceed. Historically, only between 2 percent to 3 percent of bond sales are protested, Grubbs said.

     

    Fast facts

    Traceway Park

    Work on the $3.3 million renovation to begin later this year and take one year to complete.
    Work includes:
     
  • A new soccer field, expansion and renovation of existing office/concession space and restrooms, addition of two pavilions replete with concession stands and restroom facilities
     
  • Addition of two playgrounds, new parking areas next to both the soccer fields and baseball fields
     
  • New roadway along the baseball fields

    Brighton Park

    Work is expected to begin in the spring on the $3 million Phase I and take one year to complete.
    Phase I includes:
     
  • Six tennis courts (4 to be added later), 6,000-square-foot programming facility to include office space, meeting rooms and concession area
     
  • Shuffleboard court, walking trails, parking
    Master plan includes disk golf course, beach volleyball courts, pavilions.

    Clinton Public Works Maintenance Facility

    Work on the $2.9 million project ($1.2 million from bonds) is expected to begin by the end of the year and take one year to complete.Work includes:
     
  • 13,072 square feet of floor space with 8,200 square feet of storage space above the mezzanine, two 4,800-square-foot open sheds for tractors, equipment and other storage needs
     
  • 4,800-square-foot storage area for dry bulk materials like dirt, sand, gravel, 100-square-foot building to house chlorine for water treatment; parking

     
  • Clinton Mayor Rosemary Aultman had said earlier this month when the bond sale was approved that she didn't expect any opposition.

    The Welches are embroiled in a legal battle with the city over an elaborate treehouse Scot Welch built for his children in their front yard. The city said it violates the city ordinance.

    The Welches won the case in lower court but the city appealed to the state Supreme Court, which has not issued a ruling.

    The money from the bond sale will be used for three projects. The city will spend $3.3 million to renovate Traceway Park, a 30-year old baseball, softball and soccer complex and $3 million to begin building Brighton Park off the south frontage road at Clinton-Raymond Road.

    Also, $1.2 million will be used to help fund construction of a $2.9 million public works maintenance facility off Springridge Road. The remaining $225,000 will be used to cover fees and costs associated with the bond sale.

    The Board of Aldermen voted 5-2 to approve the bond sale.

    Last week, the Jackson City Council approved issuing up to $100 million in bonds to repair the city's water plants and refinance existing debt.

    Aultman said expanding and renovating parks were the "No. 1 priority" among residents, according to information compiled by local leaders who prepared the city's latest strategic plan.

    "Every city you look at that's a successful city has an active leisure service program that incorporates all recreational activities," Aultman said. "So, this is a quality of life issue as well as a health and fitness issue."

    "Let the people decide if they want it," said Scot Welch, noting some residents have raised concerns about the issue in postings on the message board of his Web site, saveourtreehouse.com.

    Resident Jean Weiss is not among the opposers. She welcomes the improvements, noting that two of her three children are on soccer clubs and her husband volunteers both as a soccer coach and soccer referee. Their lives revolve around Traceway Park during soccer season.

    And, Weiss said, it will be nice having a park close to her neighborhood where, up to now, none exists.

    "I can't wait (for Brighton Park) to be built," said Weiss, whose home is located near the new park site.

    Ward 4 Alderman Phil Fisher, who voted against the bond sale, said he supports Brighton Park but has problems with the other projects.

    For instance, the city doesn't own the property on which Traceway Park is located. The 123 acres are on three parcels of 16th Section Land owned by the Clinton Public School District.

    The city pays the district $27,917 annually to use the land for the park. The school district, in turn, pays the city approximately $24,313 annually to use those facilities, Aultman said. The net cost to the city is, therefore, is about $3,604.

    But the city will lose that money if the school district goes ahead with plans to place a $24.7 million bond issue on the ballot. The bond issue would include funds for an athletic complex, Fisher said. The district will then no longer need the park.

    "The trouble with Traceway Park is we're putting $3.3 million into (land) we don't own and never will own," he said.

    School Superintendent Tommye Henderson said the school board is still studying the bond issue proposal.

    The financing of the 20-year bonds is problematic, Fisher said.

    Payments, which start at $387,500 the first year, steadily go up in the first four years to $626,750, level off for 11 years at this figure, then again increase to $720,000 the last four years.

    Fisher said the payment plan will leave future boards with the task of coming up with additional funds to pay the note.

    Aultman said this form of repayment is "typically what cities normally do.

    "That (format) allows you to have growth in your budget and be able to plan within your budget years to make the payments."

  • -Clarion Ledger 08/30/04