ASHLAND – The city of Ashland is making plans to issue $6.7 million worth of bonds to fund three projects.
At its regular meeting Tuesday, city council conducted the first of three readings on four ordinances related to the projects. Additional readings are planned for the next two council meetings, 7 p.m. March 5 and March 19 in the Ashland City Schools administrative office building.
If approved by council March 19, the borrowed money would be used to fund the extension of water and sewer lines along U.S. 250 East, the repainting of the “Someplace Special” water tower at Claremont and Mifflin avenues and the construction of a second fire station at Mifflin Ave. and U.S. 42.
Mayor Matt Miller and council president Steve Workman emphasized the city’s intent is to borrow the money and pay back the debt without increasing taxes.
Extending Utilities
City engineer Shane Kremser said the city plans to extend water and sewer lines along U.S. 250 East from their current end point at Montgomery Road (between Goasis and the site of the former Montgomery school) to Township Road 653 (between the Marathon gas station and Fin Feather Fur Outfitters).
The sewer project accounts for $1.44 million worth of the bonds and the water project accounts for $1.23 million.
“This is a project we’ve been talking about for some time, and we know there are developers waiting in the wings now to develop in that area, but they will not do so until we have city utilities in that particular area out there by the interstate,” Miller said.
Miller said the city has obtained permission from the Ohio Department of Transportation to go under Interstate 71, and Kremser said he hopes use trenchless technology to do directional boring.
“It’s not like we’re going to be cutting across the interstate,” Kremser said. “We’re going to be boring underneath it.”
The new utility lines will run along the north side of U.S. 250 East, mainly on private property within easements, Kremser said.
Miller said he does not expect a battle with Montgomery Township in the city’s attempts to annex land as the city and township previously reached a tax sharing agreement for previous annexations.
Miller said he has heard from developers interested in building both commercial and residential structures in the area.
“To me, this is one of the most exciting projects before us, because this one ultimately will grow our economy,” Miller said. “This will encourage more activity, both residential– more people to come and live here– but it will also encourage more economic development, new jobs and retail and commercial growth.”
Repainting the water tower
Michael Hunter, director of city utilities, spoke to council about the need to repaint both the inside and outside of the city’s water tank at Clarment and Mifflin avenues.
While the 2 million gallon tank dates back to 1931 and is still in good condition structurally, Hunter said, it is in need of a new paint job as it has not been repainted since 1993.
In addition to money for the paint job, the project includes an estimated $120-$163,000 for a water treatment system to make the city’s water safer.
Hunter said the city has an issue with trihalomethanes, byproducts that form when chlorine comes in contact with drinking water. The city recently just missed having a violation in this area, Hunter said.
Trihalomethanes have been found to be carcinogenic in animals but have not been proven to cause cancer in humans, according to Hunter.
Hunter said the project may take several weeks but should not disrupt water service.
Though the water tower is known for bearing the slogan “Someplace Special,” Miller said that slogan is unlikely to return with the new paint job. Color and design have not yet been determined, Miller said, but city officials may consider painting the city’s logo on the tower.
Building the fire station
City officials have long talked about the need for a second fire station, but it was donations from University Hospitals Samaritan Medical Center and Samaritan Hospital Foundation that prompted them to take action now.
The proposed 12,000 square foot fire station, if approved, would be built on land donated by the medical center. The foundation pledged $300,000 toward a new fire truck for the satellite station.
The 2017 gifts came with the caveat that that city would have to begin construction on the station within five years.
Fire chief Rick Anderson said the location at U.S. 42 and Mifflin Avenue will provide easy access to the U.S. 250 bypass. It will cut four minutes off response times for many city residents as well as residents of Milton and Montgomery townships, which contract with the city for fire services, according to Anderson.
Anderson said his department can operate the second station without hiring additional staff. He likely will promote at least one staff member.
Plans for the new station were presented to council last November and are currently being revised by Mull & Weithman Architects. The cost will be approximately $2.7 million, and the city is planning to use a portion of the $3 million worth of bonds sold for the project to fund improvements at the existing fire station on Cleveland Avenue.
The original design for the satellite station featured a prominent historical display area for the department’s 1928 Segrave fire truck, but Miller said the city is considering bidding the display case as an alternate and only constructing it if private donations can cover the added cost.
Funding the projects
While the city will issue the bonds at all once, some of the bonds will be paid back earlier than others, and each project will be paid for through separate funding streams.
The approximately $2.7 million for the utilities extension will be paid back over 20 years through enterprise zone funds. The $1 million for the water tank will be paid back over 15 years using water enterprise funds. The $3 million for the fire station will be paid back over 30 years using a combination of general fund revenue and money from the city’s contracts with Montgomery and Milton townships.
According to Miller, only $146,000 will come from the city’s general revenue fund annually to pay back the bond debt.
“It’s a good project,” city finance director Larry Paxton said. “It’s got good revenue streams, or we wouldn’t even be considering it.”
Stephen Szanto of municipal advising firm Sudsina & Associates said he plans to use Standard & Poor’s Financial Services as the rating agency, changing from Moody’s Investor Services, which has previously given the city its credit ratings.
The underwriter will be Stifel and Nichols, and the bonds will be sold in April. The city will have the option to refinance the bonds in five years, or anytime after the five-year period, if revenue increases or other circumstances change.
