In 2017, Plain City paid nearly $76,000 in interest for money it borrowed but never used.
At a recent meeting of the Capital Improvement Committee, village fiscal officer Renee Sonnett announced Plain City paid $97,000 in interest payments on the $4.6 million the village borrowed in 2017. She stressed however that just $1.02 million was spent on capital improvement projects, meaning the village paid about $76,000 on interest on more than $3.5 million it never used.
Earlier this year, the village returned much of the borrowed, unused money.
“It is a lot of money and I have no good answer for someone who asks, ‘Why?’” Sonnett said.
Mayor Darrin Lane said there is a variety of reasons. He said some projects, specifically the $1.06 million proposed village hall building and the $300,000 renovation to Pastime Park’s Youth Building, were not started. Sonnett said other projects were just estimated incorrectly, planned inappropriately or were just confusing.
Lane said as projects were contemplated, the village needed to borrow the money before it could move forward. He said once the project changes, the village is left with no good options.
“The way capital improvement projects are, the way the capital improvement money is set up, it is hard to manage,” Lane said.
He added, “We look bad if we don’t spend the money and we look bad if we spend it on something that doesn’t suit us.”
Lane said officials want to make sure the situation does not occur in the future.
“I really don’t know that we have a clear answer in front of us, but it is something we are looking at and trying to figure out,” Lane said.
Sonnett said a first step would be “better planning, a better idea” and “sticking to the plan.”
“I understand that plans change. I understand emergencies happen,” Sonnett said. “I knew we would not hit the number exactly, that we would be a little bit over or a little bit under. The village needs to do a better job planning out the projects so we don’t get into this again.”
Lane said the village began some projects too quickly.
“I think we are going to have to plan out more time for major road repairs,” Lane said. “We are going to need to have every single number in front of us.”
Lane said, adding it is “a synchronized dance and timing between projects, the wants of the council, the wants of the residents and the property owners.”
Officials said since the village hired a full time engineer, the process should be easier.
Sonnett said the village will need to borrow money in the future to pay for the same projects that still need to be done. She said unfortunately, the interest rates are increasing.
Lane said Capital Improvement Committee members are working to create a contingency list of projects already identified that can be quickly slotted in to use available money.
At the same meeting, councilmember John Rucker said residents are, “getting frustrated” at the way capital improvements have been handled. He specifically referenced the park.
He said village officials have known for years improvements needed to be completed. He said officials have said they don’t want to act without a plan, and then have failed to make a plan.
Councilmember Sherry Heineman said residents are also getting frustrated because the income tax levy was passed on the idea village water and sewer facilities were unsafe, yet relatively little money has been spent on water and sewer facility improvements.
“Residents see new equipment, new employees and new vehicles without seeing money spent for water,” Heineman said.