City officials agree to refinance bonds to pay for new equipment

Council tabled an ordinance to raise sewer rates.
By DENISE DICK
VINDICATOR TRUMBULL STAFF
WARREN -- City council has agreed to refinance bonds to buy new equipment but has postponed a vote to increase sewer rates.
Refinancing to take advantage of low interest rates will save about $75,000 to $80,000 annually over 10 years. The bonds were bought in 1993 and come due in 2013.
"We're not extending the debt," Auditor David Griffing said.
Police, fire, health, engineering and operations departments and Packard Music Hall will benefit with new equipment from the refinancing.
Mayor Hank Angelo said department heads were asked to submit requests for capital improvements. Griffing said that list came back with requests totaling $6 million.
"We pared it down to what we could afford to pay without increasing the debt," the auditor said.
Some items that will be bought through the ordinances passed Tuesday at a special council meeting include five police cars and eight video cameras for cruisers; computer equipment and a decontamination shelter for the fire department; new cars for the health department; building renovations and snow removal and mowing equipment for operations; and lighting equipment at Packard Music Hall.
Rate increase tabled
Council members tabled another ordinance that would increase sewer rates from $1.98 to $2.74 per 100 cubic feet of water for city residents and from $2.79 to $3.85 for nonresidents.
City officials have said the rate increase is needed because of an anticipated $350,000 budget shortfall in the water pollution control department.
"Some people balk at the costs the citizens will have to pay for it, but we have to think about the cost of doing nothing," said Councilman John Homlitas, D-3rd, legislation sponsor.
He referred to increased insurance premiums for residents who suffer flood damage.
Councilman Gary Fonce, D-at large, also referred to the possibility of increased insurance premiums. He urged council members who vote no on the legislation when it comes to a vote to also explain their idea for correcting the flooding problems.
Councilman Robert A. Marchese, D-at large, said the legislation to increase the rates would have been presented even if flooding hadn't plagued the area this summer.
"We don't want to deceive the public that it's just about flooding," he said.