Council OKs refinancing street bond to save $125K
City council agreed to the refinancing of a bond taken out in 2005, creating a possible savings of more than $125,000 over the life of the bond due to a lower interest rate.
An ordinance allowing for the refinancing was approved unanimously Tuesday night as an emergency. Prior to the meeting, city Auditor Betty Brothers explained that the 20-year bond currently has an interest rate of 4 percent, but that rate will increase to 4.75 percent in 2016.
The new interest rate will be no higher than 2.59 percent for the life of the bond and could actually go even lower for more potential savings.
The bond was used to finance the infrastructure of the streets and curbs in the areas of Third Street,Cunningham Road and Industrial Park West. The bond which expires in 2025 can’t be called until 2016, so the savings for the next two years will be placed in escrow.
In legal matters, city council opted to enter into executive session near the end of the meeting, citing pending litigation. Mayor John Berlin requested the closed-door session, referring to legal matters related to the TanFastic building, although city Law Director Brooke Zellers said other legal matters would be discussed also. No action was to be taken.
Council approved first reading on three ordinances to clean up language regarding indoor shooting ranges as permitted uses in residential districts, with each ordinance representing different residential zones. The ordinances had been recommended by the Rules & Ordinances Committee chaired by Councilwoman Cyndi Baronzzi Dickey, who said they voted 2-1 during a recent meeting to move the ordinances forward. She cast the no vote.
Council also approved ordinances allowing for the advertising of bids for the sales of a used 1995 2.5-ton Ford with a snow plow and an old used hose dryer that hasn’t been used by the fire department for years. Ordinances for additional appropriations and reductions in appropriations were approved, along with a resolution to adopt the updated Columbiana County Multi-Jurisdiction All-Hazard Mitigation Plan.
No hearing was requested regarding a new liquor license application for Salem Art Two LLC doing business as Trotters Ale House at 645 E. State St., for on-premises consumption of beer and spiritous liquor.
In utilities business, the Utilities Commission will hold a special meeting at 3 p.m. Thursday in the second floor conference room of the utilities building regarding a department building and property purchasing, with an executive session expected.
The commission will hold its regular meeting at 4 p.m. Sept. 11.
The next city council meeting will be held at 7 p.m. Sept. 16 in council chambers.