Why wasn’t the construction of the Government Center voted on by the tax payers just like
we voted on the construction of the new Bedford Township Library in 2004?
The construction of the Government Center was a decision made by the Township Board that
was in office in 2006. We have a representative form of government so the people that are
elected have the authority to make decisions on behalf of their constituents. That Board made
the decision without a vote of the people because it was in their purview to do so. They did not
have to ask the taxpayers to vote on it because they did not need to pay for the construction
via a levy or millage. They contracted with a bond attorney and governmental financing firm to
sell bonds for the project.
Bedford voters approved the construction of the Bedford Township Library because the library
is a county system, but the local community maintains the building. Bedford chose to renovate
the existing library building so the taxpayers had to approve the additional millage needed for
that construction.
How much did the building cost to construct and where did the money come from to pay for
the new Township Government Center?
In April of 2006 a Special Township Board Meeting was held to approve a $2,000,000, 20 year
term Bond to fund the project that had been discussed for many months prior. The same Board
had previously approved Poggemeyer Design Group to come up with the architectural design
and construction plans for the project. The Poggemeyer fee of $125,500 was approved at the
March 14, 2006 meeting.
At the August 15, 2006 Board meeting Bernardi Securities was awarded the sale of $2,000,000
General Bond Limited Tax Bonds at a rate of 4.229094%. At the Board’s September 19, 2006
meeting they voted unanimously to accept a bid from Wilson Builders for $2,875,000. The
terms stated that the project was to be completed by September of 2007. At that meeting the
Board also amended their General Fund Budget to release $1,000,000 from the Fund Balance (a
fund that accumulates money over several fiscal years to be used as a “rainy day fund” for
purposes such as this) to be used for the construction.
Payments on the bonds began in 2007 and continue until 2026. The total cost to the taxpayers
will be $2,968,688. The breakdown is $2,000,000 for the bonds, $962,688 for interest and
$6,000 for agent fees. The total payments each year vary as the principal is reduced the
interest changes as in any loan. The annual payment for 2013 was $143,232.