GONZALES — Gonzales City Council has unanimously approved the annual financial report concerning the debts still owed by the city as of Nov. 19.
City Manager Rene Mendez says the city has three different types of debt, including city debt, assessment debt and successor agency debt.
“The city council did approve a budget that has sufficient funds to make these debt service payments,” Mendez said.
The city debt payments are to cover the costs of solar leases and loans for water/sewer and the pool. The water/sewer loan was to build storage to hold more water and expand the waste water treatment plant. The loan was originally $3 million, with about $1.5 million left to be paid. The pool loan was originally $1.5 million and still needs to be paid off.
The assessment debt, which is in its last year of assessment, involves the Gonzales River Road improvements. Property owners in the assessment district make an annual payment on their property tax bill that goes toward the improvements and will see a reduction in their tax payment next year.
A debt is also associated with the Successor Agency with the California Housing Loan for the CHISPA housing that was completed on the northeast side of town. The loan was refinanced when the redevelopment agencies went away.
