Troy City Council approves abating taxes on $10 million bond issue from 2016

By Charles Bolinger

Editor

One of the items up for approval on Dec. 15 in Troy was a carryover item from Dec. 1, an ordinance to abate the tax that was levied to pay the principal and interest on a $10 million bond issue the city approved in November 2016.

“The tax abatement is for the general obligation bonds we took out to fund a water plant upgrade in 2016,” said City Administrator Jay Keeven. “We have been able to pay the bond interest and principal payments with funds derived from the sale of water to our customers since its issuance.  

“Since the bond is secured by property tax, we must abate that tax increase for the bond every year – since we don’t need those funds to make our payments,” he continued. “If we don’t abate that tax, property taxes would go up to make a payment that we are already making with revenue derived from our water sales.”

The next Troy City Council meeting is Jan. 5 at 6:30 p.m. in Troy City Hall, located at 116 E. Market St.