Tosa to borrow $12.4 million for 2012 capital projects

The city will borrow $12.4 million to pay for capital improvement projects that will be undertaken in 2012.

The money will pay for sewer projects, street paving, bridge repairs, building improvements and business district infrastructure. The debt will be paid back over 10 years, city Finance Director John Ruggini said.

The Common Council has authorized city staff to put the bond sales out to bid with the hopes of getting an interest rate of about 2.25 percent. Bids are expected to be opened Aug. 7, at which time the council will need to vote to finalize the process.

The city is taking on more infrastructure projects, necessitating an increase in borrowing in coming years. In the past there was a spending cap of $3.5 million, but that has been lifted.

Even after some of the major projects are completed, it's unlikely the need to borrow will return to earlier lows. A certain amount of money - reaching a plateau at about $8 million per year come 2022 - will be necessary to maintain the infrastructure.

"We're going to have to make an annual investment in the infrastructure to keep up with it," Ruggini said.

Residents will see the results of the borrowing for sanitary and storm sewer lines on their water bills. The average homeowner will pay $364 for those two portions of the bill in 2012. That dollar amount is expected to grow to $718 in 2022.

2012 Capital Improvement Projects

Street repaving

90th Street, Meinecke Avenue and 101st Street

Capitol Drive between 84th and 124th streets

Highway 100 from Walnut Street to Hampton Avenue

pavement repairs

design for streets to be repaved in 2013

Bridge repairs

Harmonee Bridge repairs

bridge spot repairs

Sewer projects

Watertown Plank North sanitary improvements

Ruby Avenue Area sanitary improvements Phase II

Ravenswood Area sanitary and storm improvements

design of pump stations

design of East Tosa utility improvements and flood relief

Meinecke Avenue Neighborhood sewer improvements

Ruby Avenue Area (100th Street) stormwater improvements

District infrastructure

North Avenue Strategic Plan implementation

Village Strategic Plan implementation

Building maintenance

back-up generator for police station

Muellner Building gutter and roof replacement

parks maintenance garage roof repairs

Public Works garage overhead door improvements

Equipment purchases

Fire engine replacement

Garbage trucks