NEW CASTLE, Pa. -- City council has given its approval on a $6.8 million bond issue to refinance some of the city's debt and to pay for several projects.
Officials said the new bond issue does not require any tax increases.
At a meeting earlier this week, council named Arthurs Lestrange & amp; Co. Inc. as the underwriter for the bond and Cohen & amp; Grigsby as bond counsel.
City administrators explained that $4 million of the bond issue will be used to refinance current debt, and an additional $2.8 million will be used to purchase public-works vehicles and provide for street paving and other projects.Officials said the move allows the city to take advantage of lower interest rates. Where current payments on the current debt total about $857,000 a year, payments on the new 20-year bond issue are expected to range between $500,000 and $600,000 a year.
The refinancing will cover $2.9 million from a 1998 bond issue, $205,000 for a line of credit from First Merit Bank for heavy equipment and an $880,000 note for the parking authority, officials said. The city took over the parking authority earlier this year.
City officials said the new bond issue also will provide money for the 5 percent local share the city needs to replace the Grant Street Bridge.