In a special meeting held Nov. 14, Gerald’s aldermen decided to move forward with major improvement project for both of the city’s water towers. 

There was considerable discussion before the decision was made.

Mayor Cary Parker asked City Clerk Jane Hungler if the project could be paid for without “cutting out any of our daily budget?” Hungler told the board that with careful budgeting, she believed it could be done. 

Increased water revenue from a rate hike will help pay for some of the project. The city will then apply for a certificate of participation (COP) to pay the rest. The city currently is paying off another COP for water improvements in the past. A certificate of deposit earmarked for water tower work will be cashed in and part of that money will be used to pay off the existing COP. There will be $30,000 left in reserve. 

Ward 2 Alderman Ed Adams noted that if something catastrophic happened, the reserve could be quickly depleted. He asked Hungler if the new COP could be extended or restructured if that occurred. Hungler assured him it could.

Adams said he was ready to move forward with the project if the first payment of the new COP could be delayed until 2020. “It’s not going to get any cheaper by waiting,” he remarked. 

Ward 1 Alderman Steve Grgurich made the formal motion to pay off the existing COP in 2019 and to allow for the expected associated legal and engineering expenses for the project to be budgeted for 2019.

Adams seconded the motion and both other aldermen voted yes. 

The cost for repairing both water towers is estimated at $523,975, but actual bids for the job are expected to be slightly lower. Repairs are expected to last 25 years. 

Annual payments of around $75,000 are expected. 

The COP for the project will be paid off in 10 years, allowing the city to save for 15 years before needing to do the job again. 

A big question is will anyone in city government 15 years from now remember that plan? Or will they find other ways to spend the money once the COP has been paid?