AUGUSTA — Voters will be asked Tuesday to borrow a total of a little less than $1.5 million in two local bonds, one for improvements to city streets and sidewalks, the other for renovations at Gilbert Elementary School.
A proposed $1.1 million, 15-year bond would fund the reconstruction of parts of Patterson and School streets and, if there is enough money, other streets in the neighborhood between Bangor and Cony streets.
The loan would be paid back in annual installments from proceeds from the city’s Cony Circle tax increment financing, or TIF, district. The city, through the TIF, shelters about $170,000 in tax revenues from development within the district, which was created when the new Hannaford and CVS buildings were constructed on the east side. The money may only be spent on capital improvements within the district, which generally encompasses the area surrounding Cony Circle.
Because of the use of TIF proceeds, said City Manager Bill Bridgeo, “there will be no impact to taxpayers.”
“That TIF didn’t result in any money going back to the developers (of CVS or Hannaford),” Bridgeo said. “The proceeds are all preserved for public improvements in that neighborhood. It’s a great way to continue the ongoing process of upgrading our municipal streets, which we try to do every year, in this case for 50 cents on the dollar.”
The other bond going to Augusta voters for approval Tuesday would borrow about $360,000 for renovations to Gilbert Elementary School.
The work would include energy efficiency improvements such as the installation of new windows, and improvements to the accessibility to the building for people with disabilities.
The work would follow air quality improvements made at the 58,000 square foot elementary school earlier this year.
Bridgeo said it would be an additional investment in a building he described as solid and sound.
The $360,000 would come through a federal bond program created through the stimulus program, or American Recovery and Reinvestment Act.
The city would not be charged interest on the bond, only having to pay back the $360,000.
Mayor William Stokes and Board of Education Chairman William Burney, in a joint statement, recommend both bonds be approved by voters.
The bond questions have been approved by the Board of Education and Augusta City Council.
Keith Edwards — 621-5647
kedwards@centralmaine.com
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