Zero-percent loan to help pave Strub Road

The project should start and end sometime in 2014.
Andy Ouriel
Feb 3, 2014

 

For the first time in a while, Perkins Township trustees have committed money to pave a road they oversee.

Problem is, they’re fully funding this $605,000 in their already-tight budget.

Trustees recently voted 3-0 to pave about 8,400 feet along West Strub Road between Campbell Street and Old Railroad Road.

Crews won’t pave areas recently resurfaced, including the intersection of West Strub Road and Hayes Avenue near NOMS.

The project should start and end sometime in 2014.

A decision to pave this busy, albeit bumpy, corridor occurred right after trustees publicly discussed missing out on a state grant that would’ve covered about half the project’s total cost.

State officials, upon rejecting Perkins’ application, countered with their own proposal, offering trustees a 10-year, no-interest loan totaling $275,000 for West Strub Road improvements.

While not ideal, all three trustees voted to accept the loan.

“I don’t see how we can do this project on our own,” trustee Jeff Ferrell said.

The project’s finances breaks down as such:

• Township taxpayers will immediately front $330,000.

• The state loan will provide $275,000, with township taxpayers coughing up this amount to repay the loan.

The financial decision adds onto Perkins’ total debt, equaling about $1 million today.

Ferrell said trustees will make necessary budget adjustments to accommodate this project. The township’s budget totaled $8.5 million in 2013 and should equal the same amount in 2014.

“This is the only way I know how we can get Strub Road done,” Ferrell said. “We have been delaying it for two years now”

Township trustees previously passed on a grant to pave West Strub Road — a decision they now regret.

In September 2012, trustees rejected a $175,000 state grant that would have covered upgrades on this corridor of West Strub Road.

“My personal opinion is to go ahead with it, get it paved and taken care of” trustee Tim Coleman said.

The conversation then quickly transitioned from paving one road to upgrading all 46 miles of streets Perkins Township oversees.

A budget crunch forced trustees to withhold funds for any road improvements in 2012 and 2013, and it’s unlikely any other township roads — other than West Strub Road — will be paved in 2014.

“We have not paved any roads for a few years because of funding” Coleman said. “It may come to the point where we ask the residents (through a vote) if they want to fund a paving program. It will take some background information. All we are doing right now is paving a mile a year. We can’t wait another 45 years to pave all of our roads”

Trustee Jim Lang requested that trustees immediately compile a list and rank which roads are in dire need of enhancements.

Among the bumpiest roads: those in the Columbus Park subdivision, including Boston Road; Lisbon and Richmond circles; and Dallas, Denver, Hartford and Memphis avenues.

“The residents’ streets need to be repaved” Lang said. “We need to sit down and make a list of priorities, but (Strub Road) is No. 1 right now”

Comments

donutshopguy

It's a no interest loan, not free money. It still needs to be paid back. How are you going to pay for this project? Stop the deficit spending.

Contango

Zero interest. About as close to 'free money' as one can get.

Nothing quite like paying with increasingly inflated dollars over 10 yrs.

Ask 'em if they'll be generous and give ya a 30 yr. loan.

$275K is 'nickels & dimes' to the State.

donutshopguy

Does the loan need to be paid back? It's not free.

How does the state generate money? From taxing you.

Contango

Re: "It's not free."

Of course there ain't no such thing as a free lunch. TANSTAAFL

"Free" use of the money is about as close as one can get. Plus one is repaying with inflated dollars.

When financing don’t you attempt to use OPM at favorable rates?

@#$% if the State wants to lend me $275K at 0% for 10 yrs. – BRING IT ON! I'd take that deal in a heartbeat.

What would you suggest, just block off the road or let it go entirely to sh*t?

bnjjad

I agree that defecit spending needs to stop. But there are critical things that needs to be done regularly, including infrastructure upgrades and maintenance. You cannot keep ignoring road conditions because there is no money. Eventually it will become a liability and will end up costing more to repair the longer it waits.

This is as close as they can get to doing the project without spending money on interest or putting the debt higher for the year.

donutshopguy

No, but I would like to know how they plan on playing back the loan. No mention of that in the article.

It's sad when our local governments watch and learn from state and federal financial dealings.

Guess we will just push that off on future generations.

Contango

Re: "state and federal financial dealings."

Understood. Not-to-worry, eventually the SHTF.

The govt. would have to increase taxes by maybe 80% and cut spending proportionally in order help balance out the mess. Ain't gonna happen.

See Pres. Obama's "myRA":

Direct free loans to the govt. 'Cause eventually the foreigners ain't gonna continue to buy our increasingly worthless debt.

Then we can be like Japan and own most of our own debt and have a debt-to-GDP ratio of > 200%.

Hey! We're loaning money to ourselves. What could go wrong? :)

donutshopguy

Have no problem with taking care of infrastructure. Just have a financial plan for the payment of the loan. Perkins Township now has a debt of over 1 million dollars. Why not 2 million ?

samiam

Where did this debt of $1 million come from? The new hall was paid for as it was built, so besides paving Strub Rd, what was the remainder spent on? I agree that the trustees need to have a financial plan to repay this loan.