City Could Save $800,000 By Refunding Bonds

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Sulphur Springs City Council gave approval on first reading of two ordinances, one for a limited tax note to cover costs of new vehicles and equipment purchases and renovations and a second to refinance existing bonds for cost saving.

The city council also awarded the contract for water materials for the Connally Street grant project to Hayes Pipe Supply, and observed National Service Recognition Day.

Sulphur Springs Mayor John Sellers recognizes members of Senior Corps and RSVP during National Service Recognition Day, April 2.

Essentially, the city agreed to refinance existing general obligation bonds at a lower rate, at a savings of about $800,000, in Ordinance No. 2745. Another $445,000 would be borrowed as a limited tax note and paid back over three years for new equipment and vehicles for the municipal departments, renovations of existing municipal buildings and for costs of issuance of the note.

Andrew Friedman with SAMCO Capital told the council the financial group has been monitoring interest rates since January, and rates have been down, which should bring a competitive rate. Ordinance No. 2743 for the limited tax note for the new items will be presented for final reading at the May meeting, then the figures will be presented for council approval in June.

Jeff Gulbus with McCall Parkhurst and Horton LLP assured council members that the wording of the limited tax note does not mean an increase in the tax rate, just that enough funding is designated in the tax rate to cover the cost of a three-year note.

The city council also selected Hayes Pipe Supply’s low bid for water materials for the Connally Street grant project. The city received four bids, each within $1,500 of the other.

Bids for steel poles for the Crosstown Trail project was withdrawn from Tuesday night’s agenda.

Sulphur Springs Mayor John Sellers announced April 2 as National Service Recognition Day, April 2, in the city, and encouraged residents “to recognize the positive impact of national service in our community, to thank those who serve; and to find ways to give back to their communities.”

He honored AmeriCorps and Senior Corps participants for their efforts, presenting local volunteers at Tuesday’s City Council meeting with a proclamation.

At the conclusion of the meeting, city officials reported representatives from the Rudy Bruner Award for Urban Excellence will be in town, visiting various locations throughout the community until Saturday. The city is one of the five finalists for this year’s award. Each finalist will receive $10,000. The winner will receive $50,000.

Author: Faith Huffman

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