by ADAM GRUENEWALD
The NYA City Council made some steps to continue to secure its financial future last Tuesday night.
Council members unanimously approved, 5-0, to take advantage of interest rates and refinance $1.92 million in bonds for the city portion of the 2009 City Hall project.
The refinancing, which will save the city $239,794, was made possible in part to the state of the financial market and foresight in the original bond agreement for early redemption, according to Nate Anhut of Ehlers and Associates.
“Given today’s interest rate market as well as some information that is coming from the federal government in sequestration and reduction in interest reimbursement for these type of bonds, it presents a good opportunity,” he said.
He also highlighted the city’s AA- rating reaffirmed by Standard & Poor’s.
“They do present a very favorable picture of the city’s finances,” Anhut said. “You should be congratulated for preserving a good rating especially in comparison to peer cities.”
Council members approved the lowest of the three bids from BOSC, Inc., out of Milwaukee, Wis., with a true interest cost of 2.72 percent.
It is more than the projected 2.26 percent that Ehlers had predicted, Anhut said, explaining volatility in the market across the country in the last week.
While the bonds do run until 2031, under the agreement, the city could elect on Feb. 1, 2022, to prepay bonds due after that date.
The refinancing of the bonds continues a trend for the city in that they have saved about $2 million in the last few years.
“It’s an excellent savings for the city,” he said. “We do know in comparison to other bids we received today this was a very favorable result.”
In other news, council members approved the fee schedule for administrative penalties for nuisance violations, which were first OK’d on May 13. Violations will cost $50 for a first offense, $62.50 for a second offense, $78.13 for a third offense, $97.66 for a fourth offense and each additional offense increases by 25 percent.
“You don’t get a clean slate at the end of the year and don’t go back to the first offense,” said City Administrator Tom Simmons. “It accumulates.”
Council members also reviewed a conditional use permit to allow for outdoor dining at Unkle Thirsty’s, located at 105 Main Street East.
Planning and Zoning Commission, led by chair Gary Wolf, had reviewed the information during their May 21 meeting during which there were some concerns raised.
The permit calls for several different requirements to lessen the impact on surrounding neighbors including an 8-foot tall fence and restrictions on access, noise level, live music and recreation.
Special events, which could include live music or recreation, would require council approval.
The NYA City Council will next meet on June 10 at 6:30 p.m.
Contact Adam Gruenewald at [email protected]