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Hagerstown's bond sale includes money for General Fund, Water Fund and Parking Fund

No money is currently earmarked as part of bond issue toward a stadium or other major redevelopment project

February 13, 2013

The City of Hagerstown’s proposed 2013 public facilities bond issue totals $4.15 million, including a little more than $1 million toward supporting the city’s General Fund, a city official told city council members Tuesday.

Michelle Burker, the city’s director of finance, said the General Fund portion of bond proceeds is made up of $250,000 toward the demolition, site work and reclamation of the former Municipal Electric Light Plant property as well as $346,000 for a 50 percent down payment on a replacement Engine 1 firetruck.

The remaining $428,427 of the General Fund bond funding would go toward other projects and emergency repair needs, Burker said.

The city’s proposed bond sale would also include $1.9 million toward its Water Fund, $1.13 million for its Wastewater Fund and $100,000 to the Parking Fund, according to documents supplied to the five-member council.

Burker said $1.17 million of the Water Fund bond financing would be used for the continuation of the system’s meter replacement program, while the remaining money would be used for upgrades at the Breichner Plant ($415,000) and continued replacement of distribution system infrastructure ($250,000) and other equipment replacements ($70,000).

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Under the Wastewater Fund, $580,000 is allocated for vehicle and equipment purchases that have been deferred for three years, Burker said. The remaining $545,000 wastewater bond funding is for other infrastructure and equipment replacements, repairs and upgrades, she added.

Burker said the Parking Fund’s allocation would be used for structural rehabilitation and caulking in the North Potomac Street Deck.

The repayment money needed for the parking, water and wastewater bond financing will be supplied by the users of those systems, she said.

City council members had no major issues with the proposed bond requests, but did make a point to note that no money is currently earmarked as part of the bond issue toward a stadium or other major redevelopment project.

Burker said city staff have begun drafting an official statement and schedule for the 2013 bond issue, and plan to return before the mayor and city council Tuesday, Feb. 26, for an introduction of an ordinance to enable the bond sale.

A bond resolution will also need to be approved by the city’s elected body prior to the sale of bonds and closing, which is anticipated to be completed by June, Burker said.

— C.J. Lovelace

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