The lease agreements and payments are structured this way so it doesn’t count against the city’s constitutional debt limit, Clutter said. The state constitution limits how much money a municipality can borrow, a percentage of its assessed value. But in this way, the bond does not go toward that debt limit.
“This is a really common practice for cities and counties,” Clutter said. “We did the same thing to build our fire station. We want to maintain flexibility in case another big project or some kind of emergency comes up.”
For more of the story, see Wednesday's Lebanon Reporter.