WARREN Mayor suggests refinancing bonds to buy equipment

The city initially bought the bonds in 1988 and refinanced them in 1993.
By DENISE DICK
VINDICATOR TRUMBULL STAFF
WARREN -- The city is considering taking advantage of record low interest rates by refinancing long-term bonds.
"The city has no short-term debt. We're one of the few cities that don't," said Mayor Hank Angelo. "But we do have long-term debt."
By refinancing, the city could save about $600,000 annually. The bonds were bought in 1988 and refinanced in 1993. The payments over the remaining years of the bond would be the same as they are now.
That money could be used to buy capital equipment. The administration sent letters this week to general fund department heads regarding asking for their requests.
"This is a good recommendation that will go to council," Angelo said.
Angelo and Councilman Robert A. Marchese, D-at large, finance committee chairman, discussed the possibility this week.
"It was my suggestion two meetings ago, after hearing [Operations Director] Frank Tempesta saying that the department's equipment is in poor condition, to spend that $600,000 or part of it to get some new equipment," Marchese said.
Expects action soon
The change requires two pieces of legislation -- one to refinance and a second to appropriate the money. Marchese expects that legislation to be before council at the next meeting.
"We haven't been able for the last two years to update our equipment," the councilman said.
The city has borrowed equipment from contractors to do work, he said.
"We're kind of like a Third World country out there," Marchese said. "We can't do anything with tree stumps because we don't have a grinder to ground out tree stumps."
Angelo referred to grass-cutting and snowplow equipment for the operations department as possible purchases.
"We've got some critical needs," Angelo said.
He also listed vehicles for some departments as a possibility.
"We're looking at equipment and safety needs," Angelo said. "When we're talking about vehicles, some of them are 1984 or 1987 vintage with a lot of miles."