OROVILLE – Kathy Jones, r, updated the Oroville City Council on the problems regarding financing the city hall expansion and remodel.
“I worked extremely hard with the state LOCAL program and got desperate and looked at two banks and I’m still working on it,” said Jones, Oroville’s Clerk/Treasurer.
“One bank said they could not finance it and U.S. Bank said they could long term…it looks good on paper, but not it’s fast enough.”
Jones explained that bonding companies are looking at all financing two or three times before approval.
“The state is saying if you can’t pay they will not take on the city’s debt because the state’s position is so bad,” Jones said.
Although the council agreed to accept the low bid from Halme Builders for $907,911 at their last meeting, Jones recommended the council not take any further action at this time. She also said removing the remodel portion of the project might make it more easily financed. However that’s an option the city would like to avoid.
“The stimulous may releive some of the strain,” said Rod Noel, Oroville’s Superintendent of Public Works. “The state may be able to do some back fill and open up some bonding as the state uses the stimulous for some projects, rather than the money coming from the general fund.”
“If we had finished this 60 days earlier we wouldn’t be going through it right now,” said Mayor Chuck Spieth.
Jones said maybe if it was done three months earlier.