MOUNT VERNON — The Board of County Commissioners approved selling up to $3.1 million in bonds to finance various capital improvement projects in county buildings.
The commissioners approved the sale at their Dec. 21 meeting.
County administrator Jason Booth said $1.675 million will go toward replacing boilers in the courthouse, Memorial Building, and county jail. Replacing hot water tanks, heat pumps, and air conditioning equipment is also on tap.
“All of the boilers broke down last year. They are 25-plus years old and inefficient. We hope to have the new boilers before the end of the year,” Booth explained.
Booth said a couple of hundred heat pumps are slated for replacement, including six in the commissioners’ area alone.
“Those types of heat pumps have a 10-year lifespan, and they were here when the county purchased the building,” he said.
The county bought the building in 1996.
The commissioners allocated the remaining $1.424 million for additional service center improvements, including replacing 402 windows. Booth said many are uninsulated, leak, and have broken fasteners.
The bonds carry a 10-year term and a 3.5% to 4.5% interest rate. The county currently gets 5.5% on its investments.
Why sell bonds?
The commissioners approved a 2024 budget on Dec. 14, including a $12 million carryover.
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About $3 million will cover 2024 first-quarter expenses. So why not use the remaining $9 for the improvements rather than funding them with bonds?
Booth said there are several reasons, including the favorable interest rate. Other reasons include better pricing for a larger project and the ability to get everything done at once.
“By having a big dollar amount, there will be a little more incentive to get better service [from the contractor],” Commissioner Bill Pursel noted. “They’ll have the privilege of serving the Knox County citizens.”
The primary reason, however, is a cautious approach to cash.
“The point of the bond is that future taxpayers pay part of the cost,” Booth explained. “We also want to make sure we don’t get overly aggressive with cash.”
In other words, the commissioners do not want to spend all the money in one day.
“I came in as commissioner when everything was paid for with cash, and we were cutting budgets,” Commissioner Teresa Bemiller said. “Being well prepared means having enough money for at least six months. Being financially secure is important to me because I have seen the other side, and it’s not pretty.”
Booth noted that with continually rising children’s services and jail costs, “you never know what might happen.”
Other action
The commissioners subcontracted with the Ohio Area on Aging to administer a $238,000 Healthy Aging grant. The money comes through the Ohio Department of Health and is federal American Rescue Plan Act money.
AOA can use the money for food and housing assistance, internet access and digital literacy, and improving access to care and healthy living. Money can also go toward home improvements such as ramps or handrails, improving lighting, and HVAC and roof repair.
The commissioners took the following additional actions:
•Approved the pre-application from Joel Gunderson and Margaret Lewis for $200,000 from the revolving loan fund
•Approved letter of intent to buy two tandem-axle snow and ice control equipment packages for the county engineer’s office
•Authorized a memorandum of understanding with St. Vincent de Paul School to use the Memorial Building as an emergency shelter
•Approved agreement between Job & Family Services, Knox Board of Developmental Disabilities, and Indiana Development Training Center for placement of youth in care
•Honored the retirement of Lori Totman as Knox County Parks District director
