City of Rochester
News Release
Accelerated Capital Plan Takes Advantage of Historically Low Interest Rates
(Monday, Dec. 3, 2012) - Mayor Thomas S. Richards has submitted legislation to City Council that would accelerate major infrastructure and capital projects planned for future years – creating jobs and allowing for work to begin within a few months.
“The City’s good credit rating and the unusually low interest rates for municipal debt will allow the City to borrow at historically low rates,” said Mayor Richards. “By borrowing now for projects we know we need to do, we can take advantage of these low rates. This will allow us to put people to work now rebuilding our infrastructure, demolishing vacant and dangerous houses and making improvements all over our city.”
The plan calls for the issuance of bonds totaling $29,150,000 and using the funds over the next three years to accelerate necessary projects such as street milling and resurfacing, finishing the construction phase of Manhattan Square Park, Phase 3 of the La Avendia Streetscape Project, repair of hazardous and failing sidewalks, work on parking garages, cemetery road repair, major road enhancements to Thurston Road and Portland Avenue and increasing the pace of demolition of vacant and deteriorated structures.
The low interest borrowing will reduce the projected budget gaps for the next four years and will accelerate the projects without increasing the overall size of our long-term capital program. The overall cost of the borrowing over the life of the projects is less than the current plan and avoids the use of operating funds that can be preserved for other purposes.
The City faces the dual challenges of structural budget gaps, largely driven by mandates beyond our control, and the need to continue to invest in our community. This proposal allows us to begin to address both challenges. It is expected to reduce the projected gaps over the next four years by a total of approximately $9 million while continuing to make needed investments in our community.
“A city needs a sound infrastructure and continuing investment to thrive and we cannot allow uncertainty to bring us to a standstill,” said Mayor Richards.
The jump-start and continuance of these projects will result in the creation and retention of the equivalent of 315 full-time jobs.
If approved by City Council at the December meeting, the City would begin active project planning in December and issue the bonds in February of 2013. The legislation with a list of the proposed projects is attached to this press release.
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News Media: For more information contact Gary Walker, City Communications Director at 428-7405.