City Council OKs Road Work Bonds

The Sidney City Council approved first reading of an ordinance funding the City's share of Link 17J costs.

The road from Interstate 80 north to Sidney, and places beyond, is now tight and slower than normal as work is underway replacing the surface. The work is a part of a state project resurfacing the Link 17J from Fort Sidney Road north to just past the Highway 30 interchange, and west to where work stopped a couple of years ago.

The City's 20 percent of the cost comes to about $2.6 million. To cover the cost, the City Council on May 11 approved an ordinance authorizing the issuance of Highway Allocation Fund Pledge Bonds.

The estimated annual payment comes in at just under $200,000. The fixed interest rate is projected to be 1.6 percent and the City's credit rating was confirmed by City Manager David Scott as an A+ rating.

In discussing how to proceed, Sidney Mayor Roger Gallaway admitted the City has “no way out of it.” He said the State committed to the work and consequently the City is obligated to its share of the cost.

The bonds will be designated as the City's “Highway Allocation Fund Pledge Bonds,” The ordinance reads that the City has no bonds outstanding issued

The May 11 city council meeting was the first reading of the ordinance. Three readings are required unless the council votes to dismiss the three-readings.

The council also received an update on the Alan Hartzler Memorial Basketball Court project from Dan Schoening. Schoening reported the fund raising has reached its goal and groundbreaking is planned for later this month.

The project was first announced in early 2020 when Sidney's Parks/Aquatic Center/Cemetery Superintendent Tom Von Seggern, and John Phillips, addressed the City Council with a proposal to construct a basketball court north to south adjacent to the sand volleyball court. The proposal was brought before the city council for support, and the Cheyenne County Commissioners. Several Fundraising events were hosted and grants awarded in reaching the project's goal.

“This is something that's been needed in the community for a long, long time,” said Mayor Roger Gallaway.

The council also approved the communications center agreement tabled in the previous council meeting. The updated agreement adjust the share of the costs between Cheyenne County, City of Sidney and Deuel County with Deuel County's share of the cost, according to the agreement summary. In 2018, the City signed an agreement with Cheyenne County and Deuel County for the Communications Center to sere Deuel County at a rate of 5 percent, Sidney at 61.75 percent, and Cheyenne County at 33.25 percent. Under the updated agreement, Deuel County's share increases to 6 percent, Sidney's share decreases slightly to 61.08 percent and Cheyenne County's decreased to 32.92 percent.

“I appreciate the transparency. That's the only argument I had,” councilman Bob Olsen said prior to the council approving the agreement,

In the previous meeting, Communications Director Heidi Gillespie was asked how much the county supports the center in non-monetary means. City Manager David Scott submitted to the council a list of in-kind services — from supplying office space to security and a backup generator – totaling a little more than $104,000, in addition to the 32.92 percent the County contributes to the operating budget.

The council also Lori Borchert as the next City Clerk/Treasurer after meeting in executive session. On February 25 of this year, Borchert was promoted to Deputy Clerk-Treasurer and Kim Phillips to Account Clerk III.

The council also heard budget reports, reports from the city manager and council members.