County will take part in bond programThe Stutsman County Commission approved participating in the American Recovery and Reinvestment Act of 2009 during its regular meeting Tuesday. ARRA is a federal program authorizing special bond issues for economic development and government facilities.
By: Keith Norman, The Jamestown Sun
The Stutsman County Commission approved participating in the American Recovery and Reinvestment Act of 2009 during its regular meeting Tuesday. ARRA is a federal program authorizing special bond issues for economic development and government facilities.
“With the program’s bonding authority there should be lower interest rates because there are tax incentives for investment in the government bonds,” said Noel Johnson, chief operating officer of the county. “By passing the resolution designating Stutsman County as a recovery zone we are allocated $6.7 million in economic development bonds and $10.1 million in recovery zone facility bonds.”
According to the resolution, economic development bonds may be used to finance public projects or as working capital expenditures that promote development. Recovery zone facility bonds may be used to finance private projects within the recovery zone.
“The county could use the bonds for roads but it requires a public vote for the county to incur any debt,” Johnson said. “The program might be useful to some of the cities or even some of the businesses within the county.”
Johnson said no agency had approached the county requesting participation in the program but had placed the item on the commission agenda in hopes it would be useful within the county.
The commission also approved a Flex PACE Interest Buy Down for Allen Enterprises. The program lowers the interest paid by the business borrowing the money.
“Allen Enterprises would build a new building in the I-94 Industrial Park for Buffalo City Diesel,” said Connie Ova, chief executive officer of the Jamestown/ Stutsman Development Corp. “Buffalo City Diesel is expanding into International truck parts and possibly into truck sales.”
The new building would be a permanent home for Buffalo City Diesel after its previous building burned April 3. The cost of the interest buy down is $25,000 with 20 percent paid by Stutsman County.
The commission also agreed to pay 20 percent of a $25,000 dues payment to the North Dakota Trade Office.
“The trade office works with a number of our businesses assisting with international trade,” Ova said. “The trade office is funded by state funds, memberships and grants.”
Commissioners also reviewed the $2 million preliminary Social Services budget for 2009.
“Expenditures are up about $50,000 and revenue is down $130,000 leaving the budget deficit spending $180,000,” Johnson said. “That includes the rise in health insurance but no adjustment for wages.”
The commission took no action on the budget but did schedule a special budget meeting for 7 a.m. on Aug. 25 at the courthouse.
Sun reporter Keith Norman can be reached at (701) 952-8452 or by e-mail at email@example.com