Charles City Council sets water/sewer contribution to City Hall project

By Travis Fischer, tkfischer@charlescitypress.com

The Charles City Council discussed funding options for the City Hall Renovation Project during a special meeting on Wednesday, Jan. 8.

Estimated at $5.7 million, the renovations will be paid for through multiple sources of funding, including federal funds, cash reserves, and a tax increment financing (TIF) district loan. During the meeting, discussion turned to the city’s respective water and sewer funds and how they would contribute to the project.

As business for the water and sewer departments account for a substantial amount of foot traffic in City Hall, it was deemed appropriate that a portion of the project be paid for out of those departments’ respective reserve funds – specifically, $200,000 over three years from each account.

Concerned that allocating a substantial amount of money from water and sewer to the project could impact the city’s ability to make unexpected and expensive repairs and being aware of the optics of drawing from those accounts to pay for the project, Council Member DeLaine Freeseman proposed a reduction.

“I’d still like to see us cut that water/sewer contribution to $100K each,” said Freeseman.

“The lower we can keep that amount, the better,” agreed Council Member Patrick Lumley.

Offering an alternative point of view, Council Member Phillip Knighten pointed out that $200,000 being divided over three years would have less impact on cash reserves than if it were all taken out at once, and that reducing the amount of cash used ultimately means borrowing more money with interest.

“If we borrow more, it’s still getting passed on to the taxpayer,” said Knighten.

It was also noted that the water and sewer contributions would be considered the “last money in” and would be reimbursed in the – admittedly unlikely – scenario that the project’s contingency fund is not fully used.

Knighten made a motion, seconded by Council Member Keith Starr, to set the water and sewer contribution at $200,000 each. The motion passed with a 4-1 vote, with Freeseman voting against.