Council unanimously approves bond resolution worth $6,600,000
Street improvements, a new fire truck, and a major reduction in the city's debt were covered in a proposal passed by the New Richmond City Council on Monday, June 12.
At their meeting Monday night, New Richmond City Council members unanimously approved Resolution #061701 awarding the sale of General Obligation Corporate Purpose Bonds, Series 2017A in the amount of $6,600,000.
Absent any public petition requesting a referendum on such bonds, the bond sale took place Monday entertaining bids from five financial institutions with the winning bid being awarded to Citigroup Global Markets Inc., of Dallas, Texas. The final adjusted price of the sale was $6,896,500.67, including an adjusted net interest cost of $969,699.34 at an adjusted true interest rate of 2.2198 percent amortized over 15 years.
About half of the proceeds from the sale will be used to finance various street and utility improvement projects ($2,955.000) and the acquisition of a fire truck ($280,000).
Ehlers, Inc. Senior Municipal Advisor, Sean Lentz, explained the remaining balance would be used to refinance existing debt at a better interest rate
"About half of this issue is refinancing of existing indebtedness that, although interest rates were not bad on that debt, because interest rates right now are very favorable, we were able to include those refinances and save the city quite a bit of money. On the 2007 (debt), as compared to the existing payments if we had left that alone, the city will pay $163,000 less in debt service over the payments going out through 2026. On the 2008 remaining debt with payments going out through 2027, interest rates were at 3.5-4 percent. With the results of today's bid, the city will pay $281,000 less in principal and interest payments through the same term. The council has been very diligent on when to do refinancing. Timing it with the new money financing has yielded really good results for the city," said Lentz.
On the eve of long-time resident Bob Swanda's funeral, Mayor Fred Horne proclaimed Monday June 12, 2017, Bob Swanda Day in recognition of his more than 20 years of service to both the police department and ambulance and rescue service.
"Whereas there wasn't anything Bob could not and would not fix, and, whereas Bob's quick wit, constant smile and mischievous laugh will be greatly missed, therefore, I, Fred Horne, Mayor of the City of New Richmond, hereby declare, in fond memory and in deep appreciation for all of Bob's service to this community, that Tuesday June 13, 2017 shall always and forever be Bob Swanda Day in the City of New Richmond. Bob will be greatly missed," said Mayor Horne.
City Administrator, Mike Darrow, reported that preparations to celebrate the opening of the John Doar History Trail, August 24-26, 2017 continue on schedule.
Management Analyst, Noah Wiedenfeld, told council members the city received a $2,000 grant from the Wisconsin Humanities Council which will be used to fund an exhibit displaying Doar family photos and memorabilia documenting the legacy of John Doar as well as a showing of the 2014 movie "Selma."