Valparaiso has approved funding arrangements for paving projects and a golf course irrigation system — again.
The city council Monday agreed to issue up to $4.4 million in general obligation bonds. Just over half will go toward road repairs. The rest will be used to replace the irrigation system at the Forest Park Golf Course.
The council had approved a $6 million bond issuance last month. But the amount was lowered after city engineers discovered there would be $1.6 million left over from this year's paving budget — after officials repeatedly told council members there wouldn't be a significant amount left.
City Attorney Patrick Lyp asked council members to pass a new bond ordinance for clarity. "The only change between the prior and this one here is reduce the amount to the $4.4 million, which is what I suggested, talking to bond counsel," Lyp explained.
The bond will let the city spend at least $8 million dollars on road work in 2025, continuing the momentum from this year's record paving budget.
It will be paid back over five years at an expected interest rate of about three percent. Even with the additional debt, the city's tax rate is expected to go down slightly, due to an increase in the city's tax base.
Monday's approval comes after months of lengthy discussions at city council meetings.
