The Enid News and Eagle, Enid, OK

Local news

Discussion

April 13, 2008

Shorter bond pay-off vs. lower bill for taxpayers: City to vote Tuesday

By Robert Barron Staff Writer

Enid city commissioners will discuss Tuesday night a controversial plan to shorten the pay-off time on a 20-year, $7 million bond plan approved by voters earlier this year.

During the meeting, which begins at 6:30 p.m. at city hall, commissioners will discuss details about the sale and maturity of the bonds.

A plan discussed by the commission in a previous meeting to shorten the 20-year pay-off period to four to five years has been met with concern by some in the community who say it will cause property taxes to increase significantly.

Ward 5 Commissioner Daron Rudy headed up the city general obligation (G.O.) bond and sales tax measures in March to raise a total $46 million for street and bridge improvement in Enid. Of the bond issue proposals, only a $7 million bridge issue was approved. A sales tax issue for a city wastewater plant also was passed by voters.

Rudy said he has discussed with City Manager Eric Benson the shorter pay-off period because it would save the city $2.7 million in interest costs.

However, it also would increase property millage rates for homeowners for that shorter period of time. If all of the $46 million issues had passed, he said, it would have increased property taxes 15 mills. Shortening the period to four or five years would not increase taxes to that extent, but it would increase them more than the 1 percent or 2 percent some expected after the election.

While voters approved the sale of bonds, they did not vote on the length of the pay-off.

Jon Blankenship, executive director of Greater Enid Chamber of Commerce and a member of the election campaign committee, has asked for a survey of the community.

Commissioners will discuss the issue during their study session, at 5 p.m. in the city hall downstairs conference center, preceding the regular meeting Tuesday, and then vote on the issue during the session.



2008 CDBG grant funding



In other business, the commissioners will consider a resolution adopting a five-year plan for Community Development Block Grant funding and Annual Action Plan for dispersing the 2008 grant allocations.

At the April 1 commission meeting Clifford Porter, executive director of Booker T. Washington Community Center, told the commission he believed the allocation plan has deviated from its traditional intent.

The community center historically has been well supported by the CDBG program, but the 2008 recommended allocation calls for the center to receive only $6,500 of a $9,000 request for installation of heat and air conditioning on its second floor and did not consider several other requests that have historically been part of the program. Porter said he felt “insulted.”

The commission can alter the annual plan or accept it previously was presented.

Text Only
Local news