Dillon bonds go on sale | SummitDaily.com

Dillon bonds go on sale

HARRIET HAMILTONSummit Daily NewsSummit County, CO Colorado

DILLON Five million dollars worth of Dillon municipal bonds went on sale Wednesday as the first major step to finance long overdue infrastructure repair within the town limits.Voters in April approved a measure calling for a time-limited sales-tax hike of one half of one percent to make annual debt payments on a series of bond issues, which will fund improvements to a variety of public works such as streets, curbs, sidewalks, culverts and recreation paths.The tax hike is scheduled to take effect on July 1, and work has already begun on the first of many infrastructure projects.The town had planned to divide a total of $20 million worth of bonds into three separate issues, with an initial offering in 2008 of $6.7 million. A drop in sales tax revenue for January and February and concern about the uncertain national economy led to a scaling back of the original bond schedule.Weve seen some sales tax declines in the last few months, so weve decided to take a little more conservative approach, town manager Devin Granbery said.The lower $5 million figure still will be more than enough to complete town projects already in the pipeline, said town finance director Carri McDonnell. According to McDonnell, only $1.5 million of the amount is committed, leaving the remainder for projects further down the road.Dillon will receive the proceeds of the current bond sale in June, and will have 20 years to pay off the debt. The financial firm of Stifel, Nicolaus & Co. bond underwriters for the town began the sale Wednesday at its Front Range office. Firm representative Vicki Mattox attended Tuesdays town council meeting and reassured council members of the health of the bond market.The bond market rallies with other bad economic news, she said. And because there hasnt been a lot of Colorado product in the market, we anticipate there will be quite a bit of interest.Town staff will continue to analyze the economic climate to decide the appropriate timing for future bond issues, McDonnell told the Council. A round of appointmentsIn other business, the town council reappointed municipal judge Dave Helmer to another two-year term. Helmer has served as Dillons legal arbiter since 1982. Friscos municipal judge Ron Carlson was selected as the towns new substitute judge.The Council also reappointed local attorney Noah Klug to his seat on the towns planning and zoning commission, and named former economic revitalization advisory committee member Warren Buettner to replace Mary Forsythe, who resigned from the commission in April, after her election to town council.Harriet Hamilton can be reached at (970) 668-4651, or at hhamilton@summitdaily.com.

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