SHAMOKIN - City council will hear plans to refinance its current debt service loans, thanks to an action taken at Monday night's meeting.
On a 4-0 vote, council approved a proposal from Concord Public Financial Advisors, Inc. of Reading and Lancaster to work on locking down lower rates on the city's debt service.
The company's principal, Daryl Peck, spoke to council at the July meeting about his plan.
Mayor George Rozinskie, and council members William Milbrand, R. Craig Rhoades and William Strausser voted to accept the proposal. Councilman Michael Snyder was absent.
At last month's meeting, Peck said the city's four existing bank loans, which require annual debt service of approximately $236,400, can be refinanced and restructured to lock in current low interest rates below the current fixed rates.
Peck said one of the loans will be fully repaid in 2016, 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.
The work will be done by Peck at no cost to the city, unless one of the proposals is approved.
Estimates will also be received for repair work to the Shamokin-Coal Township Public Library mezzanine area and offices since the city has completed its specifications for the work.
The library was damaged in December 2010 when a water pipe either burst or leaked in an unused bathroom on the second floor, causing water damage to computers and yearbooks and a light fixture to fall.
Estimates will be used to award the contract unless the total cost is more than $10,000, which must then be put out on bid, according to state law.
In other business
Council approved a ordinance calling for a stop sign to be placed at the intersection of 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.
Also approved at Monday evening's meeting were a winter services contract with PennDOT, which determines the city will provide snow and ice removal on Route 61 and the turnaround lanes in exchange for in-kind service, and a month-to-month renewal of a security contract between Shamokin City Police and the Shamokin Housing Authority until a new contract can be renegotiated.
Police will provide extra security details and patrols for the authority's housing developments.
Council also appointed four members of the city's zoning board to new terms, beginning Aug. 8: Eugene Garancheskie, five-year term expiring in 2016; Charles Verano, four-year term expiring 2015; Daniel Metzger, three-year term expiring in 2014, and David Slodysko, two-year term expiring in 2013.
A one-year term on the board remains opens and anyone interested in serving on the board is asked to contact City Hall.