Webster City Council on Tuesday voted 5-2, with Mayor Floyd Myers and Diana Newland opposed, to authorize the issuance of a maximum of $10 million in refunding bonds to refinance debt issued in 2005.
“The ordinance authorizes up to $10,000,000 for the bond refunding, although the actual amount of the issuance should be closer to $8.9 million,” Finance Director Michael Rodgers said. “The city must save at least five percent in the refunding transaction.”
The city currently pays between 4 and 4.125 percent in interest on the 2005 bond issue.
“Refinancing at today’s lower interest rates could save the city almost $1 million over the life of the bonds,” Rodgers said.
The city council voted unanimously to continue with Wells Fargo Bank as the city’s depository bank for a three year period that will end in December 2015.
The city had signed its previous contract with Wells Fargo Bank in 2007. The contract expires at the end of the year. The city had distributed requests for proposals to four banks, with only Wells Fargo and Frost Bank responding with proposals. A committee evaluated the two proposals and rated Wells Fargo as the higher scoring of the two offers.
The city council voted unanimously to approve the purchase of a replacement backhoe from Hi-Way Equipment Company, LLC for a total of $62,312.
The backhoe will replace a 1997 Case model backhoe that has exceed its useful operational life, according to Assistant Director of Public Works John Warnement.
The city council voted unanimously to approve the purchase of a replacement vehicle for Public Works from Philpott Motors for a total of $25,745. The city will purchase a 2013 Ford model truck to replace an older vehicle.
The city council voted unanimously to grant, on first reading, a special use permit to Jacque Peacock to operate a health/fitness club in an Office District at 901 Oakgrove Drive.
A public hearing was held prior to consideration of the item.
All other items were approved by unanimous vote. All members were present. Agenda