TWINSBURG — Two ordinances relating to the sale of notes for the Gleneagles clubhouse project and transfer of ownership of the Chamber house are going on to third reading at City Council’s Tuesday, Jan. 22 meeting.
One ordinance provides for the issuance and sale of $7.25 million in notes, in anticipation of the issuance of bonds, for paying construction, furnishing and equipping costs for the clubhouse.
The clubhouse notes would increase from $6.14 million to $7.25 million, with the additional $1.11 million used to pay back the general fund for costs related to the project. The bond issue date is tentatively set for February 2020.
The estimated interest rate is 6 percent per year, and the bonds are estimated to mature in 25 annual principal installments, the first of which is estimated to be Dec. 1, 2020.
At Council’s Jan. 8 meeting, resident Loren Sengstock expressed concerns about the bond financing plan and the city’s operation of the golf course, restaurant and banquet center in general.
He was particularly critical of a provision in the notes/bonds legislation that referred to a tax levy associated with the clubhouse project, and said the whole project is turning out to be a "financial boondoggle."
Mayor Ted Yates and Councilman Bill Furey emphasized there is no property tax involved with financing of the clubhouse project, only an interest-only bond agreement, which is often used to finance construction of government facilities.
"The longterm debt will be financed by restaurant, banquet center and golf revenues as the entity gets up and running," Furey said.
Yates said the provision referring to a tax levy is the standard way an ordinance relating to notes/bonds is written, and is required by state statute, the city’s legal counsel and the bond adviser.
It was noted that the finance committee will meet prior to Council’s Jan. 22 session to talk more about the issuance before Council’s final action on the matter.
Meanwhile, Law Director David Maistros said the agreement for the Chamber of Commerce house transfer to the historical society is still being finalized.
Maistros also reported he has received a second legal opinion about how "sober houses" relate to the city’s zoning code, and will release it at a future Council meeting after he has an opportunity to review it.
Finance Director Sarah Buccigross was given the OK to contact the state auditor’s office to start the process of getting a performance audit done. The audit will look at all aspects of city operations and recommend how money can be saved.
Buccigross reported that income tax collections for 2018 were $22.8 million, up from $22.3 million in 2017, while interest income was $214,000, up 17 percent.
Yates said that as of the meeting date — Jan. 8 — city crews were still picking up leaves. He announced he will give his "State of the City" address at a Chamber of Commerce breakfast Feb. 14.
Fire Chief Tim Morgan announced this is the 100th anniversary of the city’s fire department, and commemorative activities are being planned.
Reporter Ken Lahmers can be reached at 330-541-9400 ext. 4189 or email@example.com.