The Centerville City Council has scheduled two public hearings for their meeting tonight, March 17. The hearings are to elicit feedback on the city’s plan to use a sales tax pledge as as security when the redevelopment agency (RDA) seeks bonds for the arts center (no sales tax money will be used either for the bonds or the center) and on what may be the final version of an opt-out recycling program for the city.
Financial experts involved in the art’s center project agree that offering up a portion of the city’s sales tax as collateral on the bonds would provide some comfort and security to the bond underwriters and lead to much better terms for the arts center. Though none of the sales tax money would actually be used, the potential security it will provide could help ease costs being faced by the arts center.
“Right now, security is a big problem in the bond market. People don’t want to take too much risk,” said Centerville City Financial Director Blaine Lutz. “Extra security could potentially make millions of dollars worth of difference.”
Centerville’s proposed opt-out recycling program will cost approximately $3 if all the city’s residents choose to remain with the program, since all residents will be automatically enrolled until they take the steps necessary to opt out.
Up to 80 residents can leave without the price changing, but after that the cost will jump by approximately one penny for every 10 people who choose to opt out. The city is also considering providing a small offset to that cost out of city surplus.
jwardell@davisclipper.com


