Hefty expenses force Nevada City to take out loans
October 18, 2017
Nevada City plans to take out loans to fund two large expenses it incurred this year, each with close to half-million dollar price tags: the purchase of a property at 425 Nimrod St. inside Pioneer Park and the Pioneer Park swimming pool repair project.
City councilmembers agreed this month that loans are the city's best option to fund both expenses, which they say are paying for projects that will benefit the city in the long term.
City staff identified "significant deterioration of the pool structure" nearly three years ago, according to a staff report. The repair project is partially funded by tax money as well as a grant, but the remaining portion of the $429,813 price tag will be paid off in monthly installments of about $3,000 on a Certificate of Deposit Secure Loan, the report states.
In June, the city agreed to purchase a property at 425 Nimrod St., which Parks and Recreation Supervisor Dawn Zydonis called an "island" of land within Pioneer Park that the city previously didn't own.
It was the city's long-term goal to acquire the property, according to a staff report, but no plans are set in place yet for how the property will be used.
"It's a future conversation we'll have to have, as far as use," said Interim City Manager Catrina Olson.
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The city is offsetting some of the $433,866 cost of the purchase by renting the property to its previous owners until June, but it plans to pay off the rest in monthly installments of about $2,300 on a Single Family Residence Secured Term Loan, the report states.
City councilmembers voted unanimously to fund both expenses through loans.
"I think we have to do it," said Councilmember Reinette Senum.
Mayor Duane Strawser agreed, noting that "we have so many people who use the pool and who count on the pool."
"I'm personally against taking out loans … but I don't think we have a choice," Strawser said.
To contact Staff Writer Matthew Pera, email firstname.lastname@example.org or call 530-477-4231.