Hamilton is looking to borrow $40m to help fund projects
Reconstruction of Tylersville Road: From the city’s corporation limits to Gateway Avenue, which is 1.36 miles, this project would bolster the anticipated additional traffic volume (and truck weight), as well as provide a safer journey for traffic to and from Bypass Ohio 4. Where possible, traffic lanes will be widened to at least 13 feet. City funds would help fund the project, but up to $2.5 million of the note would go toward the $3.6 million project.
Storm sewer: These works include sumps and storm sewers to support street paving activities. The storm sewer projects are located on Millville Avenue, Tylersville Road, Milliken Street, the Five Points Roundabout and Progress Avenue. Up to $3.7 million of the note is earmarked for storm sewer projects, though it’s expected to be less than that total.
Waste: Wastewater treatment projects include sanitary sewer lining and replacement, Eden Park relief sewer work and manhole replacement. Up to $3.3 million of the note is reserved for remediation projects. Costs should be less than this total.
Hamilton City Manager Joshua Smith asked why the BAN financing approach was better than traditional financing, where there could be a fixed rate amortized over a number of years.
Jones said based on the city’s A1 bond rating, they could see traditional financing of 4% to 4.5%, and added that the city’s financial adviser believes the short-term rating is a best option.
“There is interest rate risk,” Jones said, but added, “the risk is right now. You are facing high rates, and we expect rates to come down.