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City of Carmi Council Approves Loans for New Water Storage Tanks

The City of Carmi Council has approved spending of $459,305.41 and approved taking out loans amounting to up to $6 million Tuesday night.  That first number is broken down with $228,273 paid out of grant money for water system improvements.  In addition, the Rosebud watermain engineering bill amounting to $30,603 goes to Brown and Roberts and the money comes out of TIF 2.  $184,515 goes to E.T. Simonds for the Saunders/Meadow project and is payable out of Motor Fuel Tax.  The remainder, also to Brown and Roberts Engineering, is also payable out of MFT funds and amounts to just under $16,000.

The loans are in relation to the water wells and that money will be borrowed through the Illinois Environmental Protection Agency.  IEPA offers 70% loan forgiveness at the end of the execution.  The city will borrow the funds for a new 200,000 gallon ground storage tank and a 500,000 gallon pedestal elevated water storage tank.  The half million gallon water tank loan terms are spread over 20 years with an estimated cost of $2,525,000.  The 200,000 gallon ground storage tank represents estimated costs of $2.3 million of the total with a term of 40 years.  If the city borrows the minimum estimated cost of the project and meets terms, it’ll only pay 30% or $1,447,500 while $3,377,500 is forgiven.

The City of Carmi also entered into an agreement with Mitch Gross of MAGnum Storage Solutions utilizing Tax Increment Financing (TIF).  He’ll get 50% of expenditures up to $17,750.  Gross offers a unique product.

It’s a one of a kind in the community.  There’s no other climate controlled in this area.  The roof on that front part has some issues in different spots where water’s been leaking, thank goodness none in the rooms but in the hallway and the foyer upfront and the kitchen in the back.  So we just need to get a new roof on that and when we do that, we’re going to be able to add at least 4 more units in the front lobby and possibly a couple in the back…at least 5, maybe more than that depending on what we need in the kitchen.  We’ve already got a list of people waiting for more rooms.

With no reports from the mayor or council members and no executive session, the meeting adjourned at 5:47pm.  The next city council meeting will feature a Truth in Taxation public hearing at the December 17th gathering.  That was triggered after city leaders proposed a 12.03% property tax increase.  Read more at Proposed Property Tax Increases to Trigger Truth in Taxation Hearing in Carmi; Cozart Appointed as Assistant City Attorney Tuesday – WRUL-FM

The hearing will get underway at 5:15pm with regular session slated to start at 5:30pm.

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1 comment
  1. Scott Thompson
    Scott Thompson
    December 4, 2024 at 3:41 pm

    How about we hold off on tax increases until the investigation into missing funds (>$1M) is completed and resolved?

    Reply

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