Oct. 22, 2010
Williams Calls Potential Huntington Bond Deal Providential Bargain
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Balancing city expenses and the initiative to move forward have been all but next to impossible tasks for members of Huntington City Council and the Wolfe Administration. During 2010, they have endured the closing of City Hall on Friday , furor over the proposed occupation tax, and the lack of funds for fall paving.
Council Finance Chairman Steve Williams praised the possible bond issuance for Big Sandy Superstore Arena improvements and refinancing of current debt.
“We take full advantage of the low interest rate environment. This is a providential bargain,” Williams told fellow council members at the Thursday afternoon work session.
Under the terms explained by the city’s bond financial advisor and bond counsel, the city would add a little over $5 million to its indebtedness to replace all seats at the arena, replace the boiler, and remodel the exterior plaza. The additional annual cost for the 20 year bonds would be around $20,000-$25,000.
On the other hand, Williams opined that if a public placement cannot be achieved, then, the city would be unable to afford a “private” placement which would likely be 15 years.
The deal depends on securing public placement of the bonds. As Williams explained , with Certificate of Deposit rates staying at about one per cent, the municipal bond market entices investors who receive about a four percent return.
As for the city, since these are Recovery bonds, about one third of the interest is paid by the federal government.
The deal must close by December 31, 2010.
ILLICIT SEWER DISCHARGE
Following a two-day DEP and EPA audit, assistant public works director , C.T. Anderson proposed an ordinance penalizing illicit discharges into the city’s sewers, such as used oil following an oil change.
The environmental auditors had stressed “get something on the books,” Anderson said.
During discussions, though, Mayor Kim Wolfe stated that an existing “state statute is more stringent.”
Prior to the Monday night first reading, city attorney Scott McClure will look at penalties provided by the state statute.
Anderson stressed that the city had no storm water MS4 ordinances on the books. He suggested that the lack of any action may have been prior attempts to roll everything related into a storm water utility, which has not been supported.
The assistant public works director plans to bring several proposed ordinances , such as ones dealing with construction and post-construction run off, to council. “[Everything will not] rest on a yes or no vote for a storm water utility.”
In addition, Anderson emphasized that this ordinance has nothing to do with roof top drainage.
OTHER BUSINESS
The sole second reading will be Police Department purchase of two Chevrolet Tahoes with grant funds.
Council will be acting on resolutions benefitting the Huntington Fire Department. One provides a grant for hazardous material and confined space training and another provides a grant for Station #1 to operate, if necessary, on an emergency generator. The HFD hopes, in the future, to obtain grants so that all stations will have an emergency generator.
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Williams Calls Potential Huntington Bond Deal Providential Bargain
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Balancing city expenses and the initiative to move forward have been all but next to impossible tasks for members of Huntington City Council and the Wolfe Administration. During 2010, they have endured the closing of City Hall on Friday , furor over the proposed occupation tax, and the lack of funds for fall paving.
Council Finance Chairman Steve Williams praised the possible bond issuance for Big Sandy Superstore Arena improvements and refinancing of current debt.
“We take full advantage of the low interest rate environment. This is a providential bargain,” Williams told fellow council members at the Thursday afternoon work session.
Under the terms explained by the city’s bond financial advisor and bond counsel, the city would add a little over $5 million to its indebtedness to replace all seats at the arena, replace the boiler, and remodel the exterior plaza. The additional annual cost for the 20 year bonds would be around $20,000-$25,000.
On the other hand, Williams opined that if a public placement cannot be achieved, then, the city would be unable to afford a “private” placement which would likely be 15 years.
The deal depends on securing public placement of the bonds. As Williams explained , with Certificate of Deposit rates staying at about one per cent, the municipal bond market entices investors who receive about a four percent return.
As for the city, since these are Recovery bonds, about one third of the interest is paid by the federal government.
The deal must close by December 31, 2010.
ILLICIT SEWER DISCHARGE
Following a two-day DEP and EPA audit, assistant public works director , C.T. Anderson proposed an ordinance penalizing illicit discharges into the city’s sewers, such as used oil following an oil change.
The environmental auditors had stressed “get something on the books,” Anderson said.
During discussions, though, Mayor Kim Wolfe stated that an existing “state statute is more stringent.”
Prior to the Monday night first reading, city attorney Scott McClure will look at penalties provided by the state statute.
Anderson stressed that the city had no storm water MS4 ordinances on the books. He suggested that the lack of any action may have been prior attempts to roll everything related into a storm water utility, which has not been supported.
The assistant public works director plans to bring several proposed ordinances , such as ones dealing with construction and post-construction run off, to council. “[Everything will not] rest on a yes or no vote for a storm water utility.”
In addition, Anderson emphasized that this ordinance has nothing to do with roof top drainage.
OTHER BUSINESS
The sole second reading will be Police Department purchase of two Chevrolet Tahoes with grant funds.
Council will be acting on resolutions benefitting the Huntington Fire Department. One provides a grant for hazardous material and confined space training and another provides a grant for Station #1 to operate, if necessary, on an emergency generator. The HFD hopes, in the future, to obtain grants so that all stations will have an emergency generator.
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