Chillicothe City Council members will meet tonight and consider refinancing the remainder of the Build America Bonds that were issued in 2010 for expanding the Chillicothe Fire Department building.
Chillicothe City Council members will meet tonight and consider refinancing the remainder of the Build America Bonds that were issued in 2010 for expanding the Chillicothe Fire Department building. This option will be discussed as a way to save a projected $190,000 through a lower interest rate for the remainder of the loan. The topic will be brought up during the council’s workshop at 5:30 p.m. in the conference room at City Hall and then discussed again during the regular council meeting, which begins at 6:30 p.m. in the Council Chambers. The city utilized $1.8 million in bonds with a starting interest rate of 1.75 percent. According to the debt service schedule that was approved at the time of bond issuance, the interest rate would continue increasing throughout the term of the loan, which would mature in 2031. The schedule also reflected an annual government financial subsidy. That subsidy began at $34,000 for the first full year but is scheduled to continually decline until maturity. The 2017 interest rate is 4.2 percent and the schedule calls for the rate to continue increasing to 6.8 percent by 2027 and remain at that level until the final bond payment in 2031. According to the schedule, the city is to receive about a $31,000 subsidy this year (on an approximate $89,000 loan payment). The schedule reflects a continual drop in the subsidy to the point of about $8,000 in 2030 and $3,451 in 2031. Refinancing the bonds is among several items up for discussion tonight. City officials will also discuss health insurance during the workshop meeting. The city currently is surveying employees about health insurance opinions, their experience and satisfaction with the city’s provider, consideration of changes they’d like to see, satisfaction of prescription benefits, acceptable steps that could be taken to reduce premium increases, and other areas. During the regular meeting, Parks Director Josh Norris will discuss a proposal to form a Friends of the Parks organization that could be utilized for fund-raising efforts for specific projects. The organization would apply for a 501c3 non-profit status. Norris will also lead discussion regarding a request for a motion wellness system which would be a physical activity station for senior citizens in one of the parks. The idea was first brought up for discussion by the Livingston County Health Center The systems, according to the health center, contribute to a senior’s motion, strenth, posture, balance and coordination, while reducing the risk of falls and increasing overall fitness abilities. The health center proposes placing the system at Danner Park, were there is less traffic than Simpson Park, and would seek grant funds from the American Academy of Dermatology to be used to establish shade Norris will also discuss the donation of a gazebo to be placed at Danner Park. A citizen had provided money for a gazebo at Simpson Park; however, a suitable location was not available. That citizen has since passed away and the trustee overseeing the fund has agreed that a memorial gazebo would be acceptable at Danner Park. During the regular meeting, the council will consider an ordinance regarding the purchase of laser driven fire extinguisher training materials from Bullex, in the amount of $19,306. The council will also hear a request from a citizen for the city to continue allowing for a community garden on Third Street. The garden had been in existence for a few years but was ordered this past summer to be mowed because it was not maintained. City Administrator Darin Chappell said that an individual has approached the city wanting to revitalize the program. Also tonight, the council will consider an ordinance authorizing an easement to Harvest Properties. The easement involves a road around the city’s waste water plant and up north to the underpass under the railroad. There currently is an existing easement from the city; however, the council will consider a new easement that more clearly defines the easement and has a surveyed road description. The council tonight also plans to declare certain items surplus, and consider an ordinance regarding food codes. An executive session, closed to the public, is expected to follow the regular meeting.