Council moves on Muni Court bond issue

DAVE MOSIER/independent editor

A depleted Van Wert City Council was missing three members because of illness and a family death, but still managed to take steps to approve a new contract with the city firefighters’ union, as well as introduce legislation to fund a bond issue to purchase and renovate the former First Financial Bank building at the corner of Washington and Main streets.

Van Wert Auditor Martha Balyeat spoke in favor of using city investment funds to buy bonds for the project, which includes the purchase and renovation of the bank building to replace the current Van Wert Municipal Court facility, noting that she typically has somewhere between $4 million and $7 million invested at any one time – a much greater amount than would be needed for the building project.

The advantage of doing so would be a much greater return on the city’s money, at least until interest rates increase again. City certificates of deposit are currently earning well under 1 percent in interest, which makes the 4.5 percent return from a bond issue very attractive.

Balyeat said the city could see $50,000 in additional interest income in 2014, with an estimated total of $800,000 in additional revenues seen over the 20-year term of the bond issue.

“Pretty impressive,” was Councilman At-Large Stan Agler’s comment on the proposal.

Balyeat did note that, if interest rates did rise over the bond issue’s rate, the city could sell the issue to another investor.

Council voted 4-0 to authorize preparation of legislation for the bond issue, which was read for the first time Monday evening. Because City Council did not have a two-thirds majority – five members – present, it could not suspend its rules requiring three readings of ordinances and resolutions.

Members of Council who couldn’t make the meeting included First Ward Councilman John Marshall and Third Ward Councilman Jerry Mazur, who were both dealing with health issues, and Second Ward Councilman Joi Mergy, who was absent due to the death of her mother.

Following a lengthy executive session to discuss the issue, City Council also introduced legislation approving a three-year contract for city firefighters. The new contract calls for raises of 1½ percent, 1½ percent and 1 percent annually.

Maintaining salt for city streets was also a concern of Safety-Service Director Jay Fleming, who noted that the city has used nearly 90 percent of its stockpile of 420 tons of salt this winter – twice what was used the past two years – and would have a tough time purchasing more because of dwindling salt stores.

Fleming said city street crews would be using salt at intersections only the next two weeks in an attempt to conserve the city’s remaining salt supplies.

That means city streets will likely be more icy than normal, and the safety-service director warned city residents to drive more carefully in the near future.

Mayor Don Farmer noted in his report that the Ohio Department of Agriculture would be spraying for gypsy moths sometime in June, and added that an informational meeting on the subject would be held at the Municipal Building from 6-8 p.m. this coming Monday, February 3 (see story below).

City Council also heard a report from Main Street Van Wert Program Manager Adam Ries on the program’s operations and the Woodland Cemetery board’s annual report.