Warsaw City Council Monday discussed the possibility of using a three-year general obligation bond to help with funding the purchase of needed street department equipment.
The bond would help the city with capital expenditures in the general fund, Warsaw Mayor Joe Thallemer said.
If approved, the bond would be used to pay for the  street department’s purchase of a garbage and dump truck and a medium sized truck.
The bond was a strategy presented by Umbaugh and Associates during the July 21 meeting to assist the city with reductions and slowdown in the general fund without having to cut services.
Thallemer said he felt the bond was a good strategy for funding critically needed equipment.
“We’re hitting a point where we’ve got to do something or the projection is we could eat into our reserves pretty significantly,” Thallemer said.
Elaine Call, council member, said she had concerns with using a general obligation bond to purchase equipment.
“Bonds are not generally used for the purchase of equipment. Those types of purchases are managed through budgeting,” Call said.
She said she had concerns about personal property taxes down the road and what that will do to the general fund.
Charlie Smith, councilman, agreed the bond is an unusual use for street department equipment purchases, but said it will help the city in a critical position where some of the vehicles in the street department are in dire need of being updated.
“This is a pretty good example of how you could use it in a critical situation,” Smith said.
The council will continue discussion during its August 16 meeting.