$250,000 added to Atlantic Bond Issue/ Tax asking to increase

News

February 16th, 2012 by Ric Hanson

City Administrator Doug Harris said a $4.7-million bond issue the Council had earlier approved to pay for the entire Capital Improvement Program (CIP) had to be amended by adding $250,000, because the bonding attorney says the City cannot do a planned lease-purchase program for equipment. He says for many years the City has had a lease-purchase agreement with AMU in order to avoid paying interest, and even though it’s a “grey area” under State law, the bonding attorney said he could not longer approve that agreement. Harris says Ruan Securities has agreed that the City add the $250k to the bond issue, and pay that same amount off within a period of six-months.

The effect he says is minimal, but it still adds to the City’s approximately $6-million budget. Public hearings on the Fiscal Year 2013 Budget will take place next Monday and Tuesday night (Feb. 20th & 21st) at 5:30-p.m. Mayor Dave Jones says he welcomes residents’ input on how the City spends their money. He said also, the levy (or tax asking) would increase this year…how much is not clear.. but Jones said it still under the 2005 tax asking. He says the City isĀ  “Still making up ground for the years we cut taxes…for four-or five-years. Now we’re repairing the streets.”