Auburn wants to raise bond cap rate for utility projects

By: Christopher Caskey / The Citizen

Thursday, May 28, 2009 9:16 PM EDT

AUBURN -- It looks like the city will ask Auburn voters to authorize raising the amount of money it can borrow for utility projects.
In an informal straw poll, the city council expressed unanimous support Thursday for raising the bond cap rate for public utility projects. But changing that cap would also call for a public referendum in November's election.

The cap, which was set in 1993, is currently $2.5 million. City officials have said in recent months that amount would likely be too low if the city wants to move forward on large energy projects.

City Manager Mark Palesh first proposed the cap be abolished. However, he said during the meeting that might not fly with taxpayers.

Palesh said he and city staff still need to figure out an appropriate bond limit.

"We'll come back with a number for you that makes sense," Palesh told the council.

All five councilors preferred raising the bond limit, as opposed to abolishing it altogether.

Matthew Smith said he would be worried about giving a "blank check" to the government. And Thomas McNabb said he does not want to set the cap too high.

"I certainly don't want it too high if it will affect our bond rating," McNabb said,

Before a referendum appears on November's ballot, the city council must approve it in time for the county Board of Elections' July 1 deadline. A public hearing is also required.

In other news:

* The city will use most of what remains from a $200,000 state grant to install new floors in the lobby of the Casey Park ice rink. Installation will cost approximately $35,000.

The floors will be the latest of many improvements at the park. The city recently accepted a donation of artificial turf that will turn the rink into an indoor soccer and lacrosse field during the spring and summer. The park's outdoor pool has also received a new surface and new lighting.

* The city will purchase natural gas at a variable rate in an attempt to save money.

The city council unanimously approved a new contract with National Fuel Resources, Inc. through which the city will purchase natural gas at a rate dictated by the market.

Natural gas is selling for between $4 and $5 per decatherm right now, Comptroller Lisa Green told the councilors. The city currently purchases gas at $10.51 per decatherm through its contract with NYSEG Solutions. That contract is up May 31.

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