Margy Hughes, Irene Reber and Ellen Wahlstrom
St. Joseph residents and petitioners
On Jan. 15, the city placed a legal notice in the Newsleader that a public hearing would be held with the intention to issue general-obligation capital-improvement-plan bonds in an amount not to exceed $5,035,000 to be used to finance the acquisition, construction and equipping of a new city hall and public-safety facility. The legal notice included that if a petition requesting a vote on the issuance of these bonds was completed within 30 days, the bond issuance would need voter approval.
A legal petition needing 100 signatures and signed by 144 voters was given to the city Feb. 19 requesting a referendum regarding issuance of these bonds. Growing out of a concern for not being well informed regarding the proposed government center and about other financial decisions made by the St. Joseph Council in a short span of time, the simple request was for residents to have the chance to vote on the upcoming government center proposal costing just more than $5 million. In fall 2015, the council had voted to purchase the former Kennedy/Colt Academy for $2.5 million, construct Field Street at a cost of more than $3 million, and an increase to water and sewer rates and hire a community director costing up to $90,000 a year. Not included are costs for additional staffing, operation and maintenance of the new facilities that could be needed. It seemed to some residents, too much too soon.
Immediately after the public hearing, the council set up a special meeting with the Economic Development Administration to take advantage of another bonding source available to cities and circumventing a referendum. The city, with the approval of the EDA, has the authority to issue revenue bonds without any referendum/voting requirements. Using revenue bonds to finance the government center would require a higher interest rate, thus costing taxpayers an additional $500,000 to the total cost of the project. This action also required the council to establish an Economic Development District where the building to be financed will be built. With a 3-1 vote by the EDA and a 5-0 vote by the city council, a public hearing was scheduled March 22 at which time a vote was passed for the 17-acre Colt Academy site to become an economic-development district.
In the meantime, the city had the petition reviewed by an attorney, who determined it was not valid because a number of signees did not print in their middle name, so the 100 names needed fell short. The legal need for a middle name is in question but if the petition was determined legal, the city would use revenue bonding through EDA. Because of this, the group initiating the petition decided to withdraw the petition to save tax payers just more than $500,000. By doing so, the city can use Capital Improvement Bonds requiring less interest rates.
We are sorry the outcome of the petition process was circumvented, thus being unable to use the petition to require a referendum. We do want to thank all who participated in the petition process and with their signatures giving voice to their concerns. We appreciate your civic interest and involvement.