Roseville Council Considers Bonding For Projects Without Referendum

The Roseville Cty Council heard testimony thils week from its bond counsel about using bonds to fund a new fire station and park development.

The bonds, done through Port Authority powers, would not be subject to a public referendum.

An $8 million bond for the fire station is expected to have an annual impact of approximately $36 a year, or $3 per month for a typical home.  The annual debt service would be approximately $735,000.

A $19 million (overall) bond for park improvements is expected to have an annual impact of approximately $70, or $6 per month for a typical home.  The annual debt service would be approximately $1,430,000.

Roseville does not have a separate Port Authority but was previously granted Port Authority powers. Because the projects the city is now pursuing are redevelopment, they can be issued through the Port Authority. 

The Port Authority can levy taxes for any project that redevelops an area or prevents a blight on the community. This could include anything from the fire house to replacing an area of town that appears in danger of degradation.

Council woman Tammy McGehee pressed staff as to why they were using the Port Authority power for the first time since 1991 instead of a general purpose bond.  

"You asked us to look at options without a referendum," replied Mary Ippel, a bond attorney from Briggs & Morgan.

Concerned citizens stayed at the long meeting in order to voice their concerns to the Council.

"I am very troubled by what I heard discussed today," said resident John Kysylyczyn. "The city does not have the authority to do this project without a referendum," he contended.

The Council is poised to approve three bond issues over the next three years with the first one to be finished before the end of 2011. Mayor Dan Roe made a motion that there would be public notice and hearings for each bond issuance.  It passed unanimously.

The next public hearing on this issue will be on Monday, Oct.24.