Sun Valley OKs $1.3 m bond issue
Funds slated for Fairway Road renovation project
By GREGORY FOLEY
Express Staff Writer
Sun Valley City Council members last week approved a plan to borrow $1.3 million to put towards a planned $1.7 million reconstruction of Fair-way Road.
In a special meeting Wednesday, July 28, council members agreed to issue $1.3 million in general-obligation bonds through the Boise office of Seattle-Northwest Securities Corporation.
The borrowed funds will be used to reconstruct and put new pavement on the entire 1.4-mile stretch of Fairway Road, which runs from City Hall northeast toward Trail Creek Cabin.
Mayor Jon Thorson last month proposed the plan, calling for the city to borrow $1.3 million and pay for the balance of the project costs with cash from the city?s $1.46 million reserve fund. The mayor said the plan would leave the city with just over $1 million in its reserve, enough cash to cover administrative costs for up to 15 weeks in the event of an unfore-seen revenue shortfall.
The council endorsed the plan last month but did not designate exactly what amount the city would borrow.
The city had previously planned to conduct the Fairway Road resurfacing project in 2007. However, it was de-termined earlier this year that the deteriorating condition of the road warranted a move to borrow the funds necessary to proceed more expedi-ently.
Thorson this week said the interest costs of the bond issue will ultimately be less than the inflation-related costs that would be incurred if the city waited to do the project.
The bond issue could be conducted without voter approval pursuant to a state law that allows borrowing to cover any expense that is deemed ?ordinary and necessary,? city officials said.
City engineers have estimated the design and engineering work would cost approximately $500,000 and the construction work would cost an ad-ditional $1.2 million.
The road project is currently scheduled to start in June 2005.
