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State Infrastructure Bank Case Summary

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MILLERSBURG — Enabling the county to get a jump start on the construction season, Holmes County Engineer Chris Young said he will use a low-interest loan to pay for the first year of a five-year plan to resurface county roads, funding for which was approved by voters in the form of a 0.25 percent sales tax. Although approved in November, collection of the additional tax does not begin until Saturday, and the engineer's office would not receive its first disbursement until July. Consequently, Young said he faced “a bit of a challenge,” in moving forward on a project for which he has yet to receive funding. “The voters approved and wanted better roads. They provided the funding mechanism, so we want to deliver on what we promised and make sure they get these newly paved roads as soon as possible,” according to a release issued by Young, who recently rolled out plans for the first phase,…show more content…
“So we need what amounts to a bridge loan one might get when building a house. We found such a loan with favorable terms in the State Infrastructure Bank,” according to Young. The Ohio Department of Transportation's State Infrastructure Bank is a direct loan and bond financing program, established for the purpose of developing transportation facilities throughout Ohio. County governments are eligible to take advantage of this program, thereby offering Holmes County a way to start paving roads in 2017 while it begins collecting the additional sales tax. Initially concerned about using taxpayer money to pay interest on a loan, Young said, “the road system desperately needs repaired now and the public expects action.” The SIB loan was the best way to be cost efficient, using all the available time and taking advantage of the current year's asphalt rates, which have been rising an average of 3-5 percent
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