Posted Online: June 16, 2010, 5:44 pm

Silvis could save $120,000 because of lower interest rates

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By Seth Kabala,

Low interest rates could save Silvis about $120,000.

Jon Miller of Ehlers & Associates told the city council Tuesday that it might be a good time to refinance bonds issued in 2001 to fund street paving, sewer, and water main work.

Refinancing likely would result in an interest rate a full percentage point lower than the current rate, although no specific figures were available Tuesday night.

About $1.953 million in principle remains on the bonds, originally issued for $2.595 million.

The city council is expected to vote on the proposal July 6, after a finance committee meeting at 8:30 a.m. Wednesday, June 23 to discuss it further. The committee also would discuss whether to pay $6,000to an organization such as Moody's or Standard and Poor's to get a bond rating, which would enable the city to sell the bonds on a national level.

Ald. Jim Cramblett, 3rd Ward, opposes spending the $6,000. He said many companies have approached him in the past about doing business with the city, so he thinks the city can sell the bonds locally.

However, Mayor Bill Fox said getting a credit rating from an agency such as Moody's could help the city in the future by enticing investors. The city never has had a credit rating.

In other business, the board:

-- Decided not to pay $1,000 in annual dues to the QC Visitors Bureau. Ald. Barb Fox, 2nd Ward, said she didn't think it was prudent to spend $1,000 on something she didn't believe brought the city the same dollar amount of benefit.

-- Expects to vote July 6 on paying architectural fees - not to exceed $39,000 - to Bracke-Hayes-Miller-Mahon for plans on the proposed new Silvis fire station on 10th Street.