Commissioners Hear About Build America Stimulus Bonds
Posted
Daniel Riordan-driordan@timesuniononline.com
Kosciusko County Commissioners heard information from county attorney Mike Miner about Build America Bonds this morning.
The bonds are a part of President Obama's stimulus package signed into law in February.
The bonds work like municipal bonds in that they are used by government entities to make capital improvements like building expansions and infrastructure growth.The Build America Bonds differ in that the federal government will pay 35 percent of the bond's interest to bond holders.
Private industry may also use the bonds for capital developments.
Miner said the stimulus money was allocated to the states, and eventually was divided among the counties.
Kosciusko County can issue up to $3.648 million of the bonds and have the government subsidize them, while businesses in the county received $5.4 million.
Miner said businesses would apply for the money and the process would be akin to that of applying for a tax abatement.
Nothing was approved at today's meeting. Miner suggested to the board that they read a home rule ordinance that may be approved at the next meeting.
The home rule would give the county, rather than the state or federal government, jurisdiction over what would be done with the money should the county decide to use it.
"This doesn't force you to touch the money," said Miner of the home rule ordinance.
Both commissioner Bob Conley and Brad Jackson asked if the county was obligated to use this money. Miner said the county won't be bound to spend any of the money even if the home rule ordinance is passed.
The money is available until Dec. 31, 2010.
Miner used the example of building an industrial park as to what potentially the money could be used for.
The commissioners will vote on the home rule ordinance at their Oct. 27 meeting.
"There is no downside to passing the ordinance," said Miner. "What we would be doing is putting the mechanism in place."
After the meeting, Miner said that there was a long list of items the bond issuance couldn't be used for such as things like tanning beds and golf courses.
According to the Wall Street Journal, as of late May, $10 billion worth of Build America bonds had been issued.
The board also approved County Clerk Jason McSherry's request to purchase a new case management system to replace the 16-year-old software the county is currently using. The county council approved the purchase at their meeting last Thursday.
Jackson said he is working on drafting a letter to the new OrthoWorx board to give them the commissioners input on what should be done with $7 million the Kosciusko County Community Foundation received from the Lily Endowment recently.
Jackson said he would like Kosciusko Community Hospital to see some expansion in terms of orthopedic surgeries.
County Administrator Ron Robinson told the board the HVAC system contract was up for renewal and suggested the board keep with its current company, Johnson Controls, for $34,986. That is the same contract as last year, according to Robinson.
Robinson also updated the commissioners on the old courthouse dome renovations.
Conley pointed out the commissioners originally voted to make the dome gold, but the right color wasn't available so the dome will remain its current grayish color.
County Highway Superintendent Dennis Pletcher told the commissioners work on the Old 30 project begins this week.
Pletcher also said he's going to take another look at the county's emergency snow program and adjust that to encompass dealing with the H1N1 pandemic.
The commissioners also accepted the bid of Climate Control, Leesburg, to repair the boilers in the justice building. The $12,270.32 bid by Climate Control was the lowest of the two bids received.
The board also heard a presentation from Just Energy. The company serves as an energy co-op.
