Creston voters to find $6 million in bonds on Tuesday’s ballot

Creston voters will find three questions on the Nov. 5 ballot asking whether they want the city to borrow up to $6 million for three “non-essential” projects that all are targets to increasing the quality of life in Creston and surrounding communities.

Three entities – Creston Parks and Rec, Gibson Memorial Library and McKinley Park Aquatic Center – are asking to borrow nearly $2 million for each of their projects – restoration and dredging of McKinley Lake, a library expansion and a renovation of Creston’s municipal pool, respectively.

In order to pass, each item needs to receive 60% of voter approval. If passed, the three bonds would span 10 years and raise the current levy from $14 to $17 per 1,000.

Where Creston stands on debt

Creston’s debt stands at $9 million and its debt limit is currently $18 million – which is based on the value of Creston’s housing within city limits at 5% of the total evaluation – according to regulations set by state law.

According to City Administrator Mike Taylor, the city’s debt is inclusive of a $5 million bond on city streets and roadways, $1 million for the demolition of 120 N. Elm St. (of which approximately $700,000 was used), $1 million for the Sontag housing development projects at Cottonwood, $300,000 for a fire truck and $40,000 on a leased city truck.

“But there is $1.7 (million) you can take out because those are sewer or sewer improvement projects and they don’t go against our debt limit. It’s just a state law,” Taylor said.

What Taylor refers to is called the “state revolving loan fund” and is paid for by user fees.

“When you flush the toilet, the city gets reimbursed by user fees and part of those fees go toward paying off that loan. So typically those aren’t paid for with property tax,” Taylor said.

The three items will count toward the city’s debt limit because they are for “non-essential” purposes.

McKinley Lake Restoration Project

The overall goal of the project is to improve and protect McKinley Lake for recreational use and enjoyment.

The existing sediment in McKinley Lake is laden with phosphorous, which can cause algal blooms. The city’s park and rec department is seeking to dredge the lake to increase depth and diversity of the lake. Increasing the water volume will provide dilution of harmful nutrients and algae, which will in turn improve the water quality of the lake, making it available for fishing, swimming and water recreation.

The estimated cost of the McKinley Lake restoration project is $3,956,100. The project budget was developed by the Creston Park and Rec board and FYRA Engineering in August 2019.

The project is not solely ‘dredging’ of McKinley Lake – that is just one piece. The overall project includes storm water wetland and a bioswale – channels designed to concentrate and convey stormwater runoff while removing debris and pollution – as part of an implementation of urban conservation and storm water practices.

The dredging portion of the project includes mobilization, dredging, water handling, property/easement costs, sediment hauling, embankment construction and erosion control. The final piece of the project is shoreline and near-shore enhancements which include construction of fishing jetties and/or docks, stabilization of eroded banks, shoreline improvement, and a potential swimming beach and shelter.

“Many of Creston’s residents hold fond memories of the water shows, ice skating and more that have taken place at McKinley Lake over the years,” said Sam Baird, Creston resident and MPAC committee member. “This lake is an absolute jewel for our community; drawing pedestrians, a shaded place for a lunch break, fishing and breathtaking views.”

Baird pointed out that the city recently invested in a bridge “that lends itself to the beauty of the area, inspiring photographers and providing panoramic views for sightseers all around the lake,” and more than $3 million has been invested in McKinley Park and its watershed restoration over the past 16 years.

“To be able to enjoy this space again and for even more family opportunities for recreation has been the goal and vision of the Park and Rec board for the last 15 years. This is the capstone to the restoration of McKinley Lake,” said Baird.

Taylor said the parks and rec department are at the early phases of raising funds for the project. The current goal of the board is to raise funds through a bond issue to match grant funds.

“We have meetings scheduled with the Iowa Department of Natural Resources to discuss selection of the project for DNR funds. We are also working with FYRA Engineering to determine all available funding resources for the project,” said Baird.

Baird said it is possible the project could be funded entirely through the bond issue and state funds, with little private fundraising needed.

“We can not determine grant funding until we raise the matching funds, through this bond issue. It is possible that we will not need the entire $2 million to fully fund the project once we have secured grant funds from all possible sources. In that case, we would only issue the amount needed, up to $2 million,” she said.

The McKinley Lake Restoration Project seeks to capitalize on years of improvements made to the Hurley Creek watershed in preparation for this final phase. Improving water quality and adding amenities to McKinley Lake and integrating park-wide improvements – such as MPAC, a swimming beach, a marina for canoes, kayaks and paddle boats, and concessions where food and drink are available for sale – are viewed to be increased recreational opportunities in Creston.

“These changes will increase the use of McKinley Lake and McKinley Park, making it a destination and bringing people from surrounding areas to enjoy what the City of Creston has to offer,” said Baird.

Creston Parks and Rec is hosting a public meeting 9:30-11:30 a.m. Nov. 2 at Jane Brown PT, PC, 408 E. Taylor St., for anyone interested in more information.

Gibson Memorial Library Expansion

The total estimated cost of Gibson Memorial Library’s expansion project is $3,360,693, which is 14.44% more than its original estimate of $2,936,641 generated by FEH Design in February 2016.

As of Oct. 22, the library board and Creston Friends of the Library have raised $1,353,170.40, of which $802,970.41 is in cash assets and the remainder is in the form of pledges.

“Since 1931, the Gibson Memorial Library has kept our citizens informed, entertained, and connected with their world. However, our facility is no longer a comfortable and inviting space, nor is it adequate for children and families,” said David Hargrove, library director. “Successful libraries don’t just hold books – they provide communities with places to meet and gather – but the Creston Public Library lacks room for that purpose.”

Hargrove said, with more than 3,000 school-aged children in the area, the library is ill-suited to host large events as it can only serve 30 at a time.

“As a result, a significant number of Creston children have very limited exposure to our public library. Hosting their events in the library, where there are connections to books and literacy, is mission-critical,” said Hargrove. “Doubling our square footage would create a comfortable, technologically connected space for groups of all ages to gather in Uptown Creston.”

Gibson Memorial Library receives 30,000 visits annually.

“Providing an inviting, up-to-date space is essential for our library to remain an anchor of the local economy,” Hargrove said.

Hargrove said the long-term impact of a library expansion has on the local economy has been evident in Clarinda, Red Oak and Shenandoah.

“In other words, we can expect 15,000 to 30,000 more visits to Uptown Creston every year. In general, recent library return on investment studies show that every dollar spent on public libraries is returned to taxpayers, on average five-fold,” he said.

Hargrove said these studies conclude that libraries deliver economic value for residents and visitors alike, in addition to enduring benefits of literacy, learning and recreation.

“It’s also worth noting that dividends of investment in our library are freely available on a year-round basis,” Hargrove said.

McKinley Park Aquatic Center Renovation

The $5,432,801 needed for the McKinley Park Aquatic Center includes a $1 million endowment. Endowments are particularly useful in lean economic times, as they provide a source of funding that enable organizations to carry on, even when other sources of funding and donations dry up. The endowment funds will be used only for major repairs and upgrades so that the MPAC will “remain on the cutting edge of aquatic design for generations to come.”

The project design and budget was provided by Waters Edge Aquatic Design in 2018 and is based upon a collaboration of the MPAC committee, public input and the design firm utilizing carefully selected features which expand the current facility, but also set it apart from nearby aquatic centers so the MPAC will be a destination for residents and visitors.

According to Baird, a MPAC fundraising committee member, the estimate for the MPAC has not changed since it was first created and the project has secured $448,000 in pledged and donated funds and $1.4 million from two Dekko Foundation grant awards that will be paid once MPAC reaches full funding.

Should voters approve MPAC's request for a bond, not only will it give it the additional $1,582,801 it needs, but the bond passage would provide the leverage to seek a matching Community Action and Tourism (CAT) grant estimated at approximately $500,000.

“This can only be sought once city matching dollars are committed,” said Baird. “As we get closer to our final goal, there are other grant opportunities that we will then meet the criteria for. We are confident with the support of the majority of our community voters, we will secure the remaining funds.”

Baird said there are a multitude of impactful results that will stem from the MPAC project.

"First and foremost, MPAC will provide an inclusive environment conducive to improved health and wellness, a place for aquatic education and water safety and overall foster a sense of community pride and fellowship," she said.

Baird said, for our existing residents, they will no longer have to drive 30-50 miles to enjoy a state-of-the art, safe place for their entire family to swim and splash.

“Currently, families are leaving town to swim in aquatic centers with features such as zero-entry, splash zones and family slides. While they are out of town, they are buying gas, groceries, dining out, and perhaps even camping or staying in hotels,” she said.

Baird said by keeping this resource within the community, it has the potential of providing less driving for our community members and the ability to draw people from other towns, which results in more local option sales tax revenue for the city.

Changing gradually

Taylor said the chance of all the projects and borrowing happening at the same time is “almost zero.”

“The city really needs those other groups to have their other money in their pocket before we borrow any money,” said Taylor. “Otherwise, you do have to borrow more than you need and we are only authorized to borrow $2 million for each project.”

Creston City Council has not made any decision as to when they are going to borrow money, should the bond items be passed by voters.

While it does cost more in legal and administrative costs to bond for three projects, Taylor said the reason the items are not presented as a combined item on the ballot is to avoid paying interest on projects that have yet to start.

For more information, visit www.creston.lib.ia.us, www.thempac.org or www.crestoniowa.gov/2154/Parks-Recreation.