Butler City Council accepts long term plan for BASA funds
Butler City Council accepted a draft for a long-term plan for the proceeds from the sale of the Butler Area Sewer Authority on Thursday, Jan. 30.
The initial draft formally organizes the plan that was outlined at the December city council meeting.
Mayor Bob Dandoy noted the usage of the word “accept,” as the plan is designed to be flexible.
“We are not bound or locked in by this,” Dandoy said. “This gives us a blueprint for the next five years.”
According to the draft, $50 million will be placed into a trust with PNC Bank, $25 million will be placed in an investment account with NexTier Bank and the remaining $15 million will be spent according to the plan.
Councilman Don Shearer suggested the inclusion of investment initiatives for the community and businesses, alongside the establishment of a land bank. Shearer clarified that while the investment initiatives already exist, BASA funds could expand their reach.
“It’s not that this is some brand new idea that’s magically going to appear, it’s turbocharging the things that we’ve already been doing that we know work,” Shearer said.
Dandoy clarified that the long-range plan currently covers pressing needs for the city, and that other ideas could be discussed or introduced into the plan later.
Councilman Troy Douthett raised a point on whether the residents actually want to invest the funds into the changes outlined in the plan.
Dandoy said that residents will have more say in how the money is spent when it comes to the interest from the trust.
The plan was accepted in a 4-1 vote, with Douthett voting against the draft.
According to the draft, four major capital improvement projects are planned for 2025, totaling $2,850,000.
According to the draft, $150,000 is planned to be allocated from long-range plan funds in 2025 toward the park. The draft noted that additional funding may be needed to complete the project satisfactorily.
$1,850,000 is planned to be allocated in 2025 toward paving, landscaping, lighting and kiosk services for all flat lots. The draft noted that the updating of kiosk services may take two years.
In 2025, $750,000 is allocated for street paving, with priority placed in accordance to a database compiled by the Office of Business and Community Development, the draft said. Council plans to establish a yearly budgeted effort for street paving in the future.
According to the draft, $100,000 is planned to be allocated toward the repair of the Monroe Street Bridge to ensure it is safe to travel on until the state Department of Transportation works on it in 2029.
The draft also outlined, in less detail, project expenses from 2026 through 2029. According to Dandoy, the draft has only set plans to spend $11.7 million of the $15 million, giving room for increased costs, changes or additional projects.
■ Year 2 (2026): According to the draft, $2,500,000 is planned to be allocated toward capital improvement projects, $2,000,000 is planned to go toward updates to the tier parking garage and $500,000 is planned to go toward continued city street paving.
■ Year 3 (2027): The draft outlines plans to spend $3,100,000 in 2027, with four total projects currently planned. Another $2,000,000 is planned to be spent toward the tier parking garage, $250,000 is planned to go toward city street paving, $450,000 toward the South McKean Street parking deck and $400,000 toward the Main Street sidewalk.
■ Year 4 (2028): The draft allocates $1,750,000 toward projects in 2028. $1,250,000 is planned to be allocated toward the flood plain project on Mercer Street over Sullivan Run, $250,00 toward Main Street amenities such as benches and $250,000 toward city street paving.
■ Year 5 (2029): According to the draft, $1,500,000 is planned for projects in 2029: $1,250,000 is planned for the flood plain project on Monroe and Elm streets and $250,000 toward street paving.
In other business related to the plan and BASA funds, the board:
■ voted on the purchase of two 2025 Ford Interceptors at a cost of $45,315 each, totaling $90,630. The purchased was approved unanimously, and the expected delivery is in May.
“This is the first blip of us being able to do things with the proceeds from the sale of BASA,” Dandoy said.
An additional $29,584 cost for customizing the vehicles to ensure they have the necessary tools was also approved.
According to the long-term plan draft, the $120,214 being spent on the vehicles will be drawn from the larger fund pools of BASA assets under a commitment to return the money when the escrow funds are released in the fall.
■ transferred $32,500,000 from the city’s account to a fidelity investment account. According to Dandoy, this is the $25 million initially outlined to be transferred, plus half the long-term plan funds, to increase the interest on the account.
The $7.5 million for the long-term plan will be pulled out of the investment account when needed.