Toledo Council approves $2.8 million loan
Updates from the Toledo City Council March 14 meeting
The city of Toledo formalized an agreement Monday for a loan of up to $2.8 million aimed at financing the infrastructure development for housing on and around the former Iowa Juvenile Home (IJH) property in Toledo.
The development work is planned for both the four acres of vacant city-owned land directly south of the IJH property as well as additional acres within the IJH property to the south and east of the main school building that will be the new home of the South Tama County Middle School.
The city’s infrastructure work will include construction of streets, water and sewer systems as well as sidewalks and stormwater drainage throughout the housing development.
Before the housing infrastructure work is to begin, the city will need to complete demolition of the IJH cottage buildings that surround the main school building so the land can be surveyed and formally divided between the school and the city.
An exact plan for the development has not been finalized though it’s expected to yield several lots for construction of single-family homes.
Toledo taxpayers will see an increase in their property taxes as a result of the city’s borrowing with the tax rate per $1,000 of assessed valuation rising from 16.63159 during the current fiscal year to 18.03248 in the upcoming year.
City officials said they are exploring a tax increment financing (TIF) arrangement for the upcoming housing development area that could help offset some of the cost to taxpayers.
The loan agreement, which passed through a public hearing without comment and through the council by a 4-0 vote, will also serve to finance $60,000 for a new police vehicle and roughly $317,000 going toward refinancing the city’s outstanding loan for the Kid’s Corner Daycare Center.
The loan was taken out through the State Bank of Toledo for 15 years at a rate of 2.95 percent interest.
The city will retain roughly half of its $6 million debt capacity once the newest loan is in place. Other outstanding debt the city is holding includes a loan for the construction of the Toledo Water Plant in 2014-15 and a loan for the 2005 construction of the Tama-Toledo Family Aquatic Center.
The loan for the water plant is currently being paid for through city water revenues and the aquatic center is being paid for by the city’s local option sales tax fund.
In other business…
Spring citywide clean-up days were set by the council for April 27 and 28. The Toledo Public Works Department will be providing curbside pick-up for junk and garbage on the 27th and for brush on the 28th. Further details will be published as the dates get closer. For questions or more information contact Toledo City Hall.
Toledo Police Sergeant Dan Quigley was honored by his department and the city for 10 years of service to the Toledo Police Department. Toledo Police Chief Nathan Shepard also updated the council on the training process of newly hired officer Colin Price. Price recently completed his field training with the department and is now working full-time, primarily during night shifts.
The council approved advertisement for bids to mow three city-owned parcels at Toledo Heights, the Reinig Center and in the Columbian addition. The bids will be for a one-year contract. Previously the city issued three-year mowing contract bids, however it was decided to lower the term given the impact of gas prices on the bidding process.