Skip to main content

Newton seeks $5.67M in loans

December 16, 2011

Newton will borrow up to $5.67 million to finance new equipment, real property improvements and infrastructure repairs.

Among those infrastructure repairs will be nine projects to rehabilitate Newton water lines and three projects to address problem sewer lines. Those rehabilitation projects along with equipment and property improvements were approved by Newton City Council in May as part of a $32.4 million Capital Improvement Plan (CIP).

"We are getting ready to put in place a capital improvement program that is so important to our city," said Robert Mullinax during his last night of service as Newton mayor. "This is a big step forward for the city of Newton."

Funding for the capital purchases and infrastructure repairs will come through two loans — a seven-year $1.875 million loan from BB&T with a 1.91 percent annual interest rate; and a 15-year $3.79 million loan from BB&T with a 3.11 percent annual interest rate.

Newton City Council approved the financing proposals during its Tuesday night. While the borrowing could be up to $5.67 million, Newton Finance Director Serina Hinson said the total funds required for financing projects in this year's CIP should be less.

"We asked for financing not to exceed $5.67 million ... but our costs came in substantially lower," Hinson said, adding the city initially budgeted $7 million for this year's projects and equipment in the CIP. "Our costs (bids) came in substantially lower ... We will actually be less than the $5.6 million and we will actually borrow closer to $4.8 million."

A determination on which equipment and purchases would be included under the seven-year loan or the 15-year loan was based on the life of the asset, Hinson said.

"We don't want to have a lien on a piece of equipment that needs to be disposed of and we can't," she said.

Some savings in forecast expenses compared to original CIP estimates came as the city was able to piggy-back equipment purchases with other cities making similar acquisitions. Other equipment was purchased from the state contact system — the purchase for which does not require board approval for purchase bid acceptance, Hinson said.

After approving plans to borrow funding, Newton City Council also approved purchase bids made on equipment and construction bids infrastructure projects.

"Everything we are talking about bids for, this council has already approved," Mullinax told city council. "We are not going to debate the necessity of these items. You already voted on it."

Items approved for purchase under the seven-year loan included:

Streets department:
Backhoe/loader: $104,470.
Seven-yard dump truck hook system: $132,131

Sanitation:
Chipper truck: $73,202.
New hook loader with recycle containers: $115,721.
International recycle truck: $165,662

Police:
Records management system: $359,653

Fire:
Startown station renovations: $79,500

Water/wastewater:
Backhoe: $98,136
Seven-yard dump truck: $143,215
High pressure vacuum truck: $293.493

Water filtration plant:
4.5 million-gallons-per-day (MGD) lake pump: $27,499

Wastewater treatment plant:
Metal storage building: $55,950

Electric:
Bucket truck: $94,143

Items approved for purchase under the 15-year loan includes:

Water and wastewater rehabilitation projects: $1,672,865
Shannonbrook; U.S. 70 W; North College Avenue; Ervin Avenue from B Street to Caldwell Avenue; Davis Street from B Street to Caldwell Avenue; East E Street from Ervin to Saunders; Boundary Street; South Brady Avenue from Fourth Street to D Street; South Brady Avenue from N Street to K Street. Sewer rehabilitation: Snow Creek outfall line; South Cline to South Main Avenue and North Frye Avenue from 13th Street to 15th Street.

Water filtration plant:
8 MGD pump: $600,000

Wastewater treatment plant:
Thickener refurbishment: $48,000

Electric:
Electric line extension: $128,775
Reconductor electric line: $220,800
Generator modifications: $387,500

Comments

I think my head just exploded!

December 17, 2011 by Backbone (not verified), 2 years 18 weeks ago
Comment: 870

NONE repeat NONE of these projets are vital to the existence of Newton as a entity.

Sure I can see some improvements are needed for water delivery and waste removal, but do they require going into more debt?

Let's delve into this, shall we?
Streets department:
Backhoe/loader: $104,470. (Lease as needed or contract out on an as needed basis!)
Seven-yard dump truck hook system: $132,131 (Ditto!)

Sanitation:
Chipper truck: $73,202. (Lease or make do, until times get better and we have more revenue!)
New hook loader with recycle containers: $115,721. (Same as above!)
International recycle truck: $165,662 (Turn over to GDS for this service, NOW! No money is made from the effort, but the equipment outlays and personell costs are greater than any conceivable amount of revenue the project WILL EVER generate!)

Police:
Records management system: $359,653 (I am very disappointed in Don Brown, 1/3 of a million bucks to purchase a computer system and upload records. I'd say shelve that issue untilt he times get better and the need presents itself!)

Fire:
Startown station renovations: $79,500 (NO FREAKIN WAY!)

Water/wastewater:
Backhoe: $98,136 (LEASE OR BUY SECOND HAND OR CONTRACT OUT THE WORK!)
Seven-yard dump truck: $143,215(DITTO)
High pressure vacuum truck: $293.493(1/4 OF A MILLION BUCKS---SEE ABOVE!)

Water filtration plant:
4.5 million-gallons-per-day (MGD) lake pump: $27,499 (OK, WHO KNOWS, MAYBEY!)

Wastewater treatment plant:
Metal storage building: $55,950 (NOPE, NO WAY, NADA!)

Electric:
Bucket truck: $94,143 (GOT ONE NOW, ITS OLD BUT IT WORKS, IF NOT LEASE ONE, OF COURSE THEY REALLY SHOULD PRIVATIZE AND LET PIKE ELCTRIC HANDLE THIS!)

Items approved for purchase under the 15-year loan includes:

Water and wastewater rehabilitation projects: $1,672,865
Shannonbrook; U.S. 70 W; North College Avenue; Ervin Avenue from B Street to Caldwell Avenue; Davis Street from B Street to Caldwell Avenue; East E Street from Ervin to Saunders; Boundary Street; South Brady Avenue from Fourth Street to D Street; South Brady Avenue from N Street to K Street. Sewer rehabilitation: Snow Creek outfall line; South Cline to South Main Avenue and North Frye Avenue from 13th Street to 15th Street.(OK MAYBEY THIS IS VALID, BUT DOES IT REALLY REQUIRE GOING INTO DEBT?)

Water filtration plant:
8 MGD pump: $600,000(DITO, ABOVE)

Wastewater treatment plant:
Thickener refurbishment: $48,000(SAME)

Electric:wHOLE OPERATION SHOULD BE PRIVATIZED AND TURNED OCER TO DUKE ENERGY AND PIKE ELECTRIC!
Electric line extension: $128,775
Reconductor electric line: $220,800
Generator modifications: $387,500
BOTTOM LINE IF THESE PEOPLE REALLY TRY TO CRAM THIS EXPANDING MOUNTAIN OF DEBT DOWN OUR THROATS, THEY SHOULD BE RE-CALLED NOW AND FIRED, ALONG WITH THE MANAGEERS AND BUROCRATS WHO DREAM UP THIS CRA#!

you can privatize most of all of this and then you can get rid of a lot of this tax burden easily!

TIME TO TAKE CHARGE OF OUR CITY NOW!

Come on, (BACKBONE). Don't you

December 21, 2011 by SWISSBYNATURE (not verified), 2 years 17 weeks ago
Comment: 875

Come on, (BACKBONE). Don't you ever have anything nice to say about your hometown!! I knew your Grandfather well and he was a City employee for many years.

Grabbing an early lead and holding off a late charge by rival Hickory, the Fred T. Foard baseball...
Below is a look at the 24th Annual Catawba County Easter Baseball Classic results: Monday's opening...
Below is the schedule for the 24th Annual Catawba County Easter Baseball Classic: 24th Catawba...

 

Premium Drupal Themes by Adaptivethemes