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City juggles funds to cover infrastructure projects
City juggles funds to cover infrastructure projects
By SUE REID
Solon City Council's finance committee approved advancing $2.5 million from the general fund Monday to the infrastructure fund to cover the cost for all of the contracts planned for 2010.
The reason for that action is that the Pettibone Road project drew a considerable amount of cash from the infrastructure fund in 2009 and will do so again in 2010, Finance Director William Weber said. The project drew over $5 million last year from the fund and is expected to draw $7.7 million this year, he said.
The infrastructure fund is comprised of a quarter of the city's income-tax revenue.
Mr. Weber said the infrastructure fund would pay back the general fund either from the income-tax revenue or the sale of bond-anticipation notes. He recommended the notes. A decision on that is expected as the city approaches the construction season, either in April and May, he said.
The action was taken in conjunction with budget hearings held last week. Discussion took place on how to supplement the infrastructure fund to cover all of the identified projects by the engineering and public works departments for 2010.
The fund, which has a carryover of $4 million, will receive a federal earmark of $2.2 million from the Pettibone Road project, as well as estimated income-tax receipts for 2010 of $8 million, for a total of $14 million in estimated revenue for this fund.
The top-priority projects for 2010 amount to $14.2 million, with priority two and three projects roughly amounting to $2.5 million, which is what the committee advanced.
Without the advancement of funds, the city would not be able to perform annual projects, which include such things as concrete repair and street striping and crack sealing, officials said.
"If we don't do something with this fund, we can't do annuals this year," Councilman William D. Mooney said, which would be a disservice to residents. "I have a real problem not doing some of the annual work," he said.
With the priority projects, the city has, in some way, shape or form, committed to them, city Engineer John J. Busch said. Specific to priority-one projects, several have matching funds that the city could risk losing if it does did not go ahead with them, he said.
Public Works Director James S. Stanek said that many of the priority projects, which include the Pepperwood storm-sewer replacement and the Briar Hill Lake dam replacement, were born from the storms of 2006.
"The work we've done in the area of storm water has peaked, and now we can move forward and focus on annuals and maintenance," said Councilman Lon D. Stolarsky, who chairs the committee. "We felt strongly we did not want to eliminate our annuals."
"We'd like to do all these projects and more, but the infrastructure fund will not support that, and we understand that, Mr. Busch said.
"Once we get over the hump of the Pettibone project, you will see funds rebound a bit," he said.
"We're fortunate to have had the cash to do that, but it certainly has an impact on what we are doing this year, and next year should be back to normal," Mr. Stanek said.
Priority projects identified include: Pettibone Road reconstruction, Pepperwood drainage improvements, North Huntington detention-basin expansion; Solon Allotment phase two infrastructure improvements, Bainbridge Road reconstruction, sanitary improvement; improvements to the Miles and Harper roads intersection; Briar Hill Lake dam replacement; Liberty Hill detention basin and inlet modifications; project design for storm-sewer improvements for Pepperwood phase two, as well as the Preserve subdivision.
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