City OKs $8.4 million bond measure

Funds to pay for capital improvement projects

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The City Council unanimously approved an $8.4 million bond measure on Aug. 15 for a slew of infrastructure projects throughout the city, as part of a capital improvement plan that was approved in May.

The bond will fund 25 projects as well as large-scale equipment purchases, and will be repaid over 15 to 20 years.

“This is the third capital plan that the council has approved, and the third consecutive year that we’re back here looking for funding to get the work completed,” said Jim LaCarrubba, the city’s public works commissioner. “The Department of Public Works has aggressively worked through the first two plans … and we’ll do the same with this plan, looking to complete projects and not just talk about them.”

The projects include $3.5 million in roadway reconstruction work along Neptune Boulevard, Park Avenue, the 600 block of West Market Street, the 200 block of East Chester Street, Georgia Avenue and Beech Street, among others. The measure will also fund the installation of tide-flex valves to alleviate flooding throughout the city, improvements at City Hall and local playgrounds, and upgrades to sewer and water facilities.

The council unanimously adopted the capital improvement plan on May 20, part of a five-year, $76.1 million initiative that encompasses major public improvement projects. Projects slated for the current fiscal year also include more than $1 million in sewer and water improvements, and $750,000 for equipment purchases.

Last year, the city borrowed $7 million to help fund projects in the capital plan, with officials saying that the city’s infrastructure is “aging.”

“There hasn’t been major road borrowing in quite a few years, and that’s also what’s making this a little bit higher than last year,” said Comptroller Kristie Hansen-Hightower.

City Manager Jack Schnirman said that the city can now attract better interest rates thanks to the positive credit rating outlook Moody’s Investors Service recently gave Long Beach, saving the city some $350,000 in interest.

In June, Moody’s said it expected that the city’s “average direct debt burden” would remain manageable given its limited near-term borrowing plans, adding that its debt is being retired at an above-average rate.

The city’s current debt burden is approximately $59 million, and it earmarks about 8 percent of its annual budget for debt repayment — lower than most municipalities, where the figure averages 15 to 20 percent, Hansen-Hightower said.

“We do have a very low debt burden compared to our actual budget,” she said. “We do expect only to see positive things from Moody’s, and every time we get that, more and more savings will come back to the city.”