Star-Journbal Editor
Hillsboro Mayor Delores Dalke, city administrator Steve Garrett, and all the "Who's" on the Hillsboro City Council had 150,000 good reasons for clasping hands and singing around the town Christmas tree this week.
Granted, they really didn't.
But after overcoming "the Grinch" that had threatened the city's coffers recently, nobody would've given it a second thought if they had.
Heaven knows, the whole town might've joined them.
As late as last week, it appeared that the Grinch (a.k.a. the planned Adams Street improvement project) was about to "steal" $150,000 from the city's capital improvements fund.
One hundred fifty thousand dollars is the approximate difference between the amount of low-interest loans the city borrowed from KDOT for the improvements, and the actual cost estimate from APAC of Wichita, the contractor for the project.
City engineer Bob Previtera delivered the bad news at the Dec. 19 city council meeting.
The perplexed council assumed the only way out of the dilemma was to pay the $150,000 with cash from its capital improvements fund.
But Mayor Delores Dalke warned that the six-figure withdrawal would force the city to shelve plans for other improvement projects, unless, of course, they could be paid for with a lump of coal.
"It would have raised havoc," Dalke said. "Whatever we would've decided we were going to do, that we would pay for out of capital improvements, would have been shortchanged. We would have been short $150,000 for next year. But that's not the story now."
That's because late last week, city administrator Steve Garrett learned from KDOT officials in Topeka that the needed funds also could be borrowed for the Adams Street project, and at the same payment terms and low-interest rate as the first loan.
"Unless something very unforeseen happens, we will be able to get the additional money that we need to do that project," Dalke said.
It's not quite a Christmas gift, because the money will have to be paid back. But to Dalke, it feels like some wealthy benefactor dropped a gold coin or two in the kettle.
"It's found money, and that's the important thing," she said.
The city borrowed $373,000 for the total project, of which $295,000 is usable for the actual construction.
Additional costs for asphalt, tree removal, moving the water main to the other side of the street, and using larger water pipes to accommodate the new townhouses, have added to the original estimate, she said.
"I will have to admit that we added to [the original project]," Dalke said. "We decided, well, before we redo the street, we'd better replace the water lines. And, there's a tremendous drainage issue in that area, let's take care of all of this.
"Well, the price went on up."
Instead of $295,000, the actual estimated cost of the project soared to $465,828.
After sharpening his pencil the contractor dropped the estimate to $454,176. If tree removal and other site work was to be done by city employees, the price would drop to $446,176.
And, assuming that the project could begin in late winter, and the paving portion begin in early spring, the rock-bottom price could be as low as $437,176, Previtera said.
"But there's no guarantee on that," he added.
When the city passed its half-cent sales tax in 1985, the revenue was earmarked for street, sewer and other capital improvements.
Each year since then, a portion of the tax revenue has been set aside for payments on installment loans for previous projects. The remaining revenue has been used for new projects, Dalke said.
"[Projects paid for by the capital improvement fund] are probably the most important thing we do," Dalke said. "Running the city, the day to day, is one thing, but this is the future of Hillsboro."
Instead of using cash from the capital improvement fund for large projects, Dalke says it makes more sense to finance them with long-term loans, provided the debt does not become excessive.
"When we did the Main Street improvements, we could have almost paid for it out of pocket," Dalke said. "But we chose to [borrow] part of it because the money was cheap, and we figured that would allow us to continue on other projects.
"Not that we want to spend ourselves into such deep debt that we can't pay it, but when money is cheap, you really should take advantage of it, and not wait until it gets expensive and then have to go borrow it.
"One of these days interest will go up again and we won't have those opportunities."
Further complicating the issue, reducing the scope or delaying the Adams Street project weren't viable options, she said, because the project needs to coincide with and accommodate Tabor College's new student townhouses, already under construction on Adams.
In addition, Dalke obligated the city by promising the MABY Foundation, which awarded the multimillion dollar grant to Tabor for the townhouses, that if the grant was awarded, the college would have the full support of the city.
"We could not have backed away from it," Dalke said.
The city's obligation to Tabor includes diagonal parking on Adams in front of the townhouses, which will "make a huge difference" in traffic flow, Dalke said.
In addition to Tabor's needs, the project, which covers the two blocks of Adams immediately north of D Street, is a mandate from citizens.
"All the way through town, Adams is a very, very poor street," Dalke said.
"If you drive the street, you can see that the whole thing needs to be redone. I've been approached by people all up and down Adams Street, asking when the street in front of their house is going to be done. So it's not like people don't think it's important.
"The people down the street hope the project continues on past their house, too.
"And of course we hope it will."
In other business,
— The council approved a 25-cent per hour cost of living increase for all city employees, effective Jan. 1.
"If you haven't been fired, if you're good enough to stay on the payroll, it doesn't matter how good of a job you're doing, you're getting 25 cents," Dalke said. "It's strictly a cost of living increase."
Additional funds have been set aside for department heads to award as merit pay increases, as determined in performance reviews.
— The council approved the payment of vouchers totaling $151,267.74.
— The council approved the final payments for streets, sewer and utility construction at the new Mennonite church and neighborhood development project.
Previtera said the $195,849.30 project had been completed within the contracted price.
The council also approved the payment of $3,033.75 to Previtera's engineering firm for its work.
— The council renewed cereal malt beverage licenses for Alco Discount Store, the Hillsboro golf course, Vogt's Hometown Market, Ampride, and Casey's General Store.
— In the city administrator's report, Garrett said the new emergency backup generator had been installed at City Hall and will be tested on Mondays at the same time as the emergency sirens.
— At the mayor's request, the council approved the re-appointment of Jim Elliott to the Marion County Economic Development Board, and appointed Christi Wulf as a new city representative to the board.
