Washington Evening Journal
https://washington-ia.villagesoup.com/p/not-adding-up/1434404

Fairfield Ledger   Mt. Pleasant News
Neighbors Growing Together | Jun 26, 2017

Not adding up

By Kent Dallmeyer

October 23, 2015
Washington, Iowa

To the Editor:
It is my understanding that Public Health’s expense for renting space from Federation Bank totals $49,062. In consideration for the rent, Federation Bank pays all of the electric and water utility bills, maintains the public spaces and fifth-floor meeting room, snow removal, paper products for restrooms, and provides an elevator for all of the Public Health clients.
Where will the funds come from if Public Health does not receive the various grants that have been requested? The project estimate is $2,800,000. What happens if the cost for the project comes in significantly above the estimates?
If Public Health borrows $2,000,000 at 2.85 percent interest, the annual interest cost is $57,000. If the interest rate is in excess of 2.85 percent, the interest cost will increase.
In addition to the interest cost, how many thousands of dollars will be paid annually by Public Health to pay for electric and water utilities and for the general maintenance and upkeep of the facility? Taxpayers will pay for mowing and snow removal. Also, one must add to the annual costs the thousands that must be paid to reduce the principal of the general obligation bonds.
In my opinion, it is less expensive and more tax-efficient for Public Health to continue to rent their facilities from Federation Bank and not construct a new building.

Kent Dallmeyer