By PETER HUSSMANN
Jasper County residents would pay no additional property taxes as a result of voting in support of a $1.45 million bond issue next week to make improvements to the Courthouse's heating and cooling system.
So said Jasper County elected officials after meeting Friday afternoon to open bids in advance of publication of an estimated cost of the project. More on that in a minute.
Three bids were received on the two alternatives sought by the supervisors with Two Rivers Group of Altoona submitting the low bids on both.
Two Rivers submitted a base bid of $1.446 million for a geothermal system. Its alternate bid for the construction of a traditional system added $122,000 to that cost.
A base bid of $1,915,000 (add $178,000 for alternate) was received from Central Iowa Mechanical of Des Moines with S&S Plumbing and Heating of Marengo submitting a base bid of $1,490,750 (add $644,000 for alternate).
The supervisors said they were not suprised that the alternate bids for a traditional heating and cooling system came in with additional costs. The problem for the contractors is that the work would need to be completed by March 31, 2012 in order for the county to be eligible to receive a $253,000 grant.
That hurried construction schedule worried supervisors.
"If we do the conventional and take the grant, it's less," said supervisor Denny Stevenson. "But geothermal is more efficient. My biggest concern is that we don't get it done by March 31 and we forego the grant."
Supervisor Joe Brock concurred.
"I don't support entering into this with such a time constraint," he said. "We have to focus on getting it done right."
Though the supervisors could not approve the low bid - that cannot be done until voters give 60 percent approval on the measure on the Nov. 8 ballot to issue no more than $1.45 million in general obligation bonds for the heating and cooling project - they did agree to publish notice in local newspapers that the estimated cost is $1,446,000, the base bid received from Two Rivers on the geothermal system. Should the bond issue pass, the supervisors plan to let the bid at its meeting on Nov. 15.
Following the meeting, the Newton Independent asked what impact approval of the bonding measure might have on the county's debt service property tax level.
Likely none, said Jasper County Auditor Dennis Parrott.
On Tuesday, the Board of Supervisors has a resolution on its agenda to enter into a scope of services agreement with Public Financial Management, Inc., to work with the county to refinance all its outstanding indebtedness to take advantage of the historically low interest rates.
Though details of the assessment of the county's potential savings from refinancing its indebtedness are not complete, county officials expect significant savings, enough to offset the need for a property tax increase even with the additional bonding for the courthouse heating and cooling system.
The county currently has about $15 million in outstanding debt, about 15 percent of its bonding capacity.
The supervisors also make note of the county's eligibility to receive nearly $600,000 in state historic preservation tax credits for improvements made to the courthouse dating back years and including the new heating and cooling system cost.
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