Valley council finances bonds for infrastructure work
Published 9:27 am Wednesday, May 26, 2021
VALLEY — On Monday night, the Valley City Council agreed to bond financing that will allow the city to continue with infrastructure work in the city. It was approved in two warrants, one for the remainder of 2021 and another to begin in 2022. The one for this year comes at a taxable rate of 3.57 percent. The one for 2022 won’t be taxed and has a rate of 2.68 percent. AuburnBank is financing the warrants for the city. Each warrant is for $5 million.
Mayor Leonard Riley told each council member that the financing will allow for up to $600,000 in street paving and other such projects in each district. He asked each council member to come up with a priority list of how the money can be spent in their district. He suggested that the more traveled roads in the district have the higher priorities.
The rules were suspended and ordinances were adopted on one reading to approve the two warrants.
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The reason the 2021 warrant will be taxed is that it puts the city over the $10 million annual threshold, which is subject to federal taxes. It’s more than $10 million when combined with previous bond financing for the current year.
AuburnBank representative Bruce Emfinger was present to explain the bond rules that are in play. He said taxing will take place for six or seven months on the first warrant that was approved but not for the second one.
In other action, the council approved a resolution covering the cost of hooking up power to a sewer project on Combs Road. Alabama Power will be doing it for $70,000.
Another resolution was approved to replace a sidewalk along with curbs and gutters on 61st Street and 60th Place in Langdale. The East Alabama Water, Sewer and Fire Protection District is completing some sewer and water line work in the area. A galvanized pipe that’s currently under the street will be replaced. The new pipe will be moved to the side of the road, underneath the sidewalk.
Riley said it was his understanding that the pipe being replaced was very old and that a new pipe needed to go in. The sidewalk and curb are broken in places and in need of replacement. Riley said it was a good idea to do all this work at once rather than having to come back and do parts of it later on.
A contract in the amount of $40,390 was approved for low bidder Gresco Utility Supply of Dothan, Alabama. They will be supplying five-inch PVC conduit for a lift station project on Combs Road. Riley said the cost was more than what was expected but does fall within the initial projected cost estimates.
The upcoming work on Combs Road is needed before work can begin on housing subdivisions that will be taking place in that area on the city’s west side.
The rules were suspended and immediate action taken to sell some city-owned property. Judson Hay purchased some property on 45th Street for $1,200 and Bobby Laney purchased land at 3242 Highway 29 for $7,500.