By Andrew Walsh
awalsh@wbcowqel.com
A busy summer of paving in Galion is about to get busier. The Galion Finance Committee approved a list of street paving projects to pass on to City Council.
These further projects are set to occur this year, and will go along with the Route 61, Route 598 widening, and South Portland Way paving projects. Treasurer Brian Treisch asked the committee to send this to council with an emergency clause, so that if passage occurs the various departments can begin work as quickly as possible.
The list, as put together with input from the Street Department, is as follows: Gill Ave from Church to the corner of Erie, Jefferson Street from Harding Way to Heise Park, Tidd from Bucyrus to the Township Line, North Columbus Street from Harding Way to just past Payne, Wilson Avenue, Pershing Aveenue, and Edgewood/Center Street.
This list was put together by the Street Department, and confirmed by the mayor and members of the administration. Mayor Tom O’Leary informed the committee that his office is working toward “a more systematic rating” of the streets and when they should be paved. Right now they are using a map that lists when each of the streets in the city was last paved, but they are working for a more “date-driven” system which will better show when these projects should take place so City Council can better budget for them.
The total cost of the paving is estimated at $316,446. Treisch recommended increasing appropriations in the General Fund by $320,000. As per the rules, the money must be additionally appropriated, added to the General Fund, and then moved to the Street Fund.
Several important budgetary items were discussed.
A stranded payment cost with AMP, in the sum of $787,105 was given the once over on how to pay. Through financing plans with AMP, Galion has the option to spread this payment out over monthly payments for 15 years, at 1.1 percent interest. This was the course of action that Treisch recommended, and it was generally agreed that at such a low interest rate this would be good for the city.
This finance plan with AMP came up again when discussions for the Efficiency Smart bill took place. Galion renewed with this group in 2014 for a second three-year contract, and that bill is being paid in installments, but the initial three-year contract was deferred. That cost is in the neighborhood of $350,000. One of the options put on the table was to pay it in one lump sum, which the City can afford to do; another was the spread it out over the six years they have allowable to them to pay it. This issue will go before City Council on Tuesday night.
O’Leary put forth the idea of negotiating with AMP to see if they would be willing to buy out the city’s debt in this matter. If so, Galion could then roll that $350,000 into their 15-year payment plan at 1.1 percent interest, which would be much more generous terms than those on offer from Efficiency Smart. While the idea was well received, the committee decided to table that business for further consideration.