Midvale City Council approves bonds for roadway improvements
Mar 30, 2017 11:37AM
● By Bryan Scott
City council voted to approve issuing sales tax revenue to fund reconstruction and rehabilitation for roads. (Travis Barton/City Journals)
Midvale City Council approves bonds for roadway improvements [2 Images] Click Any Image To Expand
By Ruth Hendricks | [email protected]
The Midvale City Council voted during the March 7 council meeting to approve issuing sales tax revenue bonds to fund reconstruction and rehabilitation of roads. The project would bring all roads in Midvale to a Pavement Condition Index of at least 80.
The Pavement Condition Index (PCI) is a numerical rating used in civil engineering which ranges from 0 to 100 and is used to indicate the general condition of a pavement, with 100 representing the best possible condition. Pavement distress such as cracking, bumps, sags, lane/shoulder drop-off or potholes lower the rating.
The project also includes reconstructing and adding curb/gutter, sidewalk, and storm drain features to about 14 Midvale City streets. Construction is expected to begin this spring, with an anticipated completion in spring 2020.
Laurie Harvey, assistant city manager and director of administrative services, estimated that the revenue needed for the project is $9 million.
“Until the property tax increase last year, we couldn’t keep up with road maintenance,” Harvey said. “The quality of our roads fell below the level we wanted.”
Now the additional property tax revenue is enough to help cover the debt service on the bond. “It costs a lot to maintain roads that are in disrepair,” explained Harvey. “We thought it was better and less costly to bring them up to an excellent quality”
A parameters resolution was adopted during the Feb. 7 council meeting, authorizing the issuance of not more than $11.5 million of sales tax revenue bonds at an interest rate not to exceed 6 percent per annum, to mature in not more than 21 years.
Harvey told the council that she anticipated market conditions would support an interest rate between 3.15 and 3.25 percent with a 15-year term, which is well below the established limit in the parameters resolution.
A public hearing was held during the March 7 council meeting. There were no public comments. This hearing was the last step required before City officers could approve the final terms and provisions of the bonds as discussed. Harvey said that they planned to issue the bonds at the end of March.
As reported in the March issue of the Journal, the Midvale City Council has agreed to a resolution of their intent to adjust the boundary between Midvale and Murray from 6604 and 6654 South on 700 West. Garbett Homes plans to develop the property into 94 to 139 single-family homes.
The topography of the land makes it difficult to connect Murray’s utilities to the site, and Midvale City leaders did not think it was a good idea to connect Midvale utilities to Murray residential property. Both Midvale and Murray City Councils approved of a resolution to annex the property into Midvale City.
A public hearing will be held on Tuesday, April 18 at 7 p.m. at the Midvale City office to accept input.