SHAMOKIN - Shamokin City Council may hire Concord Public Financial Advisers Inc. to refinance and restructure the city's annual debt service.
During a 25-minute presentation Monday night that included various charts and tables, Daryl S. Peck, principal of Concord Public Financial Advisers Inc., of Reading and Lancaster, said the city's four existing bank loans, which require annual debt service of approximately $236,400, can be refinanced and restructured to provide lock-in current favorable low interest rates below the current fixed rates.
Peck said in 2016, one of the loans will be fully repaid, which will reduce the annual debt service by approximately $63,400 to $173,000, beginning in 2017. He said the annual debt service will drop again in 2029 to approximately $146,000, while all debt will be fully repaid in 2031.
Peck, who was invited to the meeting by city clerk Steve Bartos, said the initial fixed rates on three of the loans expire Dec. 1, while the other fixed rate expires in 2013.
He said locking in the rates will protect the city from the possibility of higher interest rates in the future and provide more certainty in developing and monitoring budgets.
He said restructuring the existing debt will provide budgetary relief during the current fiscal year.
"Now is the time to refix these rates," Peck said.
Shamokin Treasurer Brenda Scandle said, "This presentation makes senses, but I don't have a vote."
Councilmen R. Craig Rhoades and William Strausser recommended reviewing the information from the independent financial adviser before committing to the proposal.
Rhoades stated, "I think we should strongly consider this."
Council members agreed to further discuss the proposal at an Aug. 1 work session.
In other business
Council approved the first reading of an ordinance calling for a stop sign to be erected at Commerce and Franklin streets for motorists traveling east on Commerce Street. Stop signs are currently posted at Commerce and Franklin streets for traffic moving north and south on Franklin Street.
Amanda Schoffstall of Shamokin, who is employed at Susquehanna Bank in Shamokin, told council members she was rudely treated by Bartos when she came to City Hall to complain about an expired six-month parking permit that costs $100.
The permit expired Dec. 31 and Schoffstall attempted to renew it in early January. But Schoffstall reportedly wanted $4.15 credit for the few days she was late in paying for her permit because she claimed she couldn't get to City Hall prior to Dec. 31 to pay for the permit.
But Bartos told her she would have to pay the full $100 fee in accordance with a city ordinance governing parking permits.
Schoffstall claimed Bartos called her complaint "ridiculous" and was very argumentative with her. She said, "He called me crazy and inconsiderate. He was very disrespectful."
Bartos said, "I offered to help you, but you were harsh toward the staff," Bartos said. "I apologize for my actions, but I don't think I did anything wrong."
Schoffstall said she spent about 1 1/2 hours at City Hall trying to resolve her complaint over a $4.15 credit she was seeking.
Bartos, who noted Schoffstall received a $6.50 pro-rated rebate on last year's six-month parking permit, said he told Schoffstall to contact Mayor George Rozinskie if she wasn't satisfied with the response she received at City Hall.
Rozinskie, who wasn't present during the argument at City Hall that reportedly was witnessed by two other city employees, told Schoffstall she should have been more courteous with the staff. "I'm sure you wouldn't want people to act like that in the bank where you work," he said.
Schoffstall then became emotional and left the meeting. As she was walking down the steps at City Hall, Schoffstall told a News-Item reporter, "That's the second time he (Bartos) made me cry."
Council approved a request by Shamokin Rotary Club to plant a memorial tree in honor of longtime active Rotary official Lenny Weikel.
Council members granted permission to VNA Health System Crossings Hospice to conduct a butterfly release at 2 p.m. Sunday on Market Street.
A request by Phoenix Rehabilitation and Health Services to hold an outdoor fall festival at Mill Road Square from 3 to 9 p.m. Wednesday, Sept. 14, was approved.
Council granted permission to the Brush Valley Regional Chamber of Commerce to hold its annual wellness duck drop and the North American Railcar Operators Association 50-mile excursion on Sunday.
Rozinskie appointed David Kopitsky Sr. to the city redevelopment authority board for a five-year term.
Council will hold a special meeting at 7 p.m. July 26 to discuss insurance renewals and a finance agreement with Myers and Lynch Insurance Inc.