As the City of Athens prepares to build its new pool, City Council is preparing for its cost.
The city has been planning to replace the pool for more than a year. It will cost around $7.3 million, requiring the city to take out a bond. But the city will first have to undergo a bond rating process, city officials said at Monday's council meeting.
The city of Athens currently holds an AA2 bond rating, meaning they have shown the ability to pay off their debts in the past. Chris Knisely, council president, expressed confidence in the city’s credit rating.
“We hope to maintain our good AA2 rating,” she said.
The system is similar to receiving a loan, which requires that a person maintain a good credit score. The city will have to receive a good bond rating in order to secure a bond, Knisely said.
“They base their rating on local income and the city’s past bond payments," she said.
The city will receive its bond rating from Moody’s Investors Service, a corporation that evaluates cities based on their economic situation and how well they repaid their previous bonds.
Kathy Hecht, city auditor, said her office completed an audit last week to determine the city's financial situation, which she said yielded positive results.
“The outstanding report that we got with the audit is also helpful with us going out to Moody's for our bond rating.” Hecht said.
Once the city receives a bond rating, they will be able to take out the money they need to construct the pool. The city passed a levy in 2014 that will pay for the bond over a period of 20 years.
The levy is projected to raise about $17 million. The money that is not used to pay back the bond will go toward funding city parks, according to a previous Post article.
Council also passed three ordinances Monday night.
The ordinances included allowing for the disposal of older Go Buses, accepting a donation of 14 acres from the Athens Rotary Club, and allowing for the disposal of the green glass from ARTS/West.
The city also appointed Nicholas Palmer, an Ohio University alumnus, to the Arts, Parks, and Recreation Board of Advisors.
