MONROE - Preparing for the possibility that Monroe will not qualify for any federal grant money for building a second fire station, Monroe's fire chief is presenting another option to the city for the proposed facility.
"We're not closing the door on that (grant), but we have about 25 percent qualifying chance, and being awarded, even less," Fire Chief Daryl Rausch told the Finance and Taxation Committee on Tuesday.
However, the City of Monroe is "ahead of the game," with respect to its ability to move on the terms of the grant, which gives 60 days to start moving ground, he added.
"We have done the background work, and already have the land," he said. "Larger cities' departments can't move that quickly."
The land the council set aside on West 17th Street is in a tax increment district, but the city cannot use TID funds to finance the station.
To discuss other financing options, Rausch brought in financial advisor Greg Johnson from a public finance company named Ehlers.
Johnson presented the committee a preliminary report on the financial impact, specifically on taxes, for 10, 15 and 20 years.
Estimating $800,000 for the building, plus $30,000 for related financial expenses for issuance, Johnson projected debt would range from $1.03 million to $1.35 million.
The average tax rate for a 10- or 15-year term would be $0.15 per $1,000 equalized value, and for a 20-year term, $0.10 per $1,000. The cost to the owner of a $100,000 home would be $10 per year for 20 years, or $15 per year for 10 to 15 years.
The cost of the building was based on the estimates of three contractors, Rausch told the committee.
"That's a pretty spartan facility; a steel building, generic, but it would fit the neighborhood of the (Honey Creek) Industrial Park," he said.
The city could save about $10,000 by doing fire station financing at the same time it does financing for the 8th and 9th Street reconstruction project next fall, Johnson said.
"We're not closing the door on that (grant), but we have about 25 percent qualifying chance, and being awarded, even less," Fire Chief Daryl Rausch told the Finance and Taxation Committee on Tuesday.
However, the City of Monroe is "ahead of the game," with respect to its ability to move on the terms of the grant, which gives 60 days to start moving ground, he added.
"We have done the background work, and already have the land," he said. "Larger cities' departments can't move that quickly."
The land the council set aside on West 17th Street is in a tax increment district, but the city cannot use TID funds to finance the station.
To discuss other financing options, Rausch brought in financial advisor Greg Johnson from a public finance company named Ehlers.
Johnson presented the committee a preliminary report on the financial impact, specifically on taxes, for 10, 15 and 20 years.
Estimating $800,000 for the building, plus $30,000 for related financial expenses for issuance, Johnson projected debt would range from $1.03 million to $1.35 million.
The average tax rate for a 10- or 15-year term would be $0.15 per $1,000 equalized value, and for a 20-year term, $0.10 per $1,000. The cost to the owner of a $100,000 home would be $10 per year for 20 years, or $15 per year for 10 to 15 years.
The cost of the building was based on the estimates of three contractors, Rausch told the committee.
"That's a pretty spartan facility; a steel building, generic, but it would fit the neighborhood of the (Honey Creek) Industrial Park," he said.
The city could save about $10,000 by doing fire station financing at the same time it does financing for the 8th and 9th Street reconstruction project next fall, Johnson said.