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Show I .' CENTERV1LLE Bids for i' .': sale of $600,000 in general obli- 1 , gation bonds for a proposed 1 : storm drainage project in Cen- terville will be accepted until :: 7:30 p.m. March II at City : Hall, 521 North 400 West, ; Centerville. :: : BIDS WILL then be opened i April 1, according to Ken i : : Newman, fiscal consultant for : the city. I : Mr. Newman told the city ' r council that while the city . could take 40 years to repay . . the bonds, it would be advis-' advis-' able to terminate payments i within 25 years, or sooner if : , possible. THE BONDS will be available avail-able for recall after ten years, he said. Bonds will be repaid at an average rate of $53,625 per year, based on seven percent interest. Yearly payments will begin with about $45,000 repaid re-paid in interest and $10,000 in principal for the first five years. FOR THE next five years, $15,000 will be applied to principal prin-cipal and this will increase each few years as the interest amount decreases. If carried to maturity, the $600,000 bond will cost about ' $1,340,625 of which $740,000 will be accrued interest. V MR. NEWMAN said he would advise the council to-"payoff', to-"payoff', the bond indebtedness indebted-ness as soon as possible after the first ten years. The bond funds will be used to pay for a city-wide storm drainage project previously approved by the council. Low bid for the project was for $578,600 if the contract is awarded to R.C. Tolman, of Centerville, as the individual low bidder, or $584,753 if the; i contract goes to Dunn Cnstruction Company of Pleasant Grove who submitted a combined low bid for doing both the storm drainage project pro-ject and a special curbs, gutters gut-ters and sidewalk project in the central part of the city, grb |
