The Trenton City Council last night over-rode the Mayor’s veto and selected a special tax attorney to prepare legal documents related to the financing of the fire departments’ burn training tower and land development.
The agreement is with the public finance law firm Gilmore and Bell. The company was represented at last evenings’ city council meeting by attorney Toni Stegeman of Kansas City.
The council previously approved a loan with Community Leasing Partners of Manhatten, Kansas regarding the burn tower and land development. That loan is to be paid back with revenues generated by the fire department sales tax. The city council previously accepted a $730,000 bid for the burn tower.
Development of the ten-acre site includes concrete work, gravel, fencing, electricity, and light poles. That raises the project cost to $1,200,000. Last month, the city council accepted terms of the 20-year loan with a fixed interest rate of 4.68%. The city plans on making payments of $90,000 annually.
The Gilmore and Bell attorney estimated the cost at $10,000 to prepare legal documents and issue a tax opinion to Community Leasing Partners. It’s expected that the additional cost will be added to the principal borrowed but payments will still be $90,000 per year.
The first motion to hire Gilmore and Bell as special tax attorney passed on a vote of four in favor and two opposed. Voting “yes” were Larry Crawford, Glen Briggs, Lou Fisher, and Larry Porter. Opposed were Brad Chumbley and Dave Mlika.
Saying he was uncomfortable with the unexpected additional cost to the city and the tax-exempt status of interest paid by the city to the bank, Mayor Nick McHargue announced his veto. The call then was made to have a vote to override the veto, but, before the vote was taken, additional discussion was held.
The attorney for the city, Tara Walker, indicated the specific legal documents and tax opinion required were beyond her expertise. Fire Chief Brandon Gibler expressed his disappointment in learning there’s an additional cost; but noted the $10,000 is less than one percent of the total project estimate, therefore he felt it was the right thing to do.
City Administrator Ron Urton explained Trenton is facing a short time-frame in ordering the fire training tower. The bid, which came in at $730,000, expires February 1st. Urton noted the bid came before issues arose with international trade and the cost of steel has risen considerably since then.
When the veto override vote was taken, this time by roll call, all six councilmen present approved of the selection of Gilmore and Bell, keeping the fire department project on schedule. Absent for the meeting last night were Travis Elbert and Jenn Hottes.
