Trenton City Council looks to refinance loans saving almost $800K

City of Trenton Website

Refinancing three long-term loans with the use of lower interest rates is expected to save the city of Trenton $55,000 per year or as much as $798,000 over the life of the loans.

The Trenton City Council on Monday night voted seven to nothing to allow Utility Director City Administrator Ron Urton to sign disclosures subject to a financial analysis tentatively scheduled about the 10th of March.

Figures concerning the savings were provided by Charlie Zitnik of the underwriting company, DA Davidson of Kansas City. Zitnik reported the federal Tax Cuts and Jobs Act of 2017 offers the city the ability to re-finance projects at three locations. According to his information, refinancing 2012 certificates of participation (as the loan is called) for past water plant improvements would save approximately $500,000 on a tax-exempt basis on the remaining years of the loan with the final payment by the city in 2038.

Refinancing the 2014 loan on sewer plant improvements would save the city, even at a taxable interest rate, $205,000 over the remaining years of the loan with the final payment in 2038.

Refinancing the 2018 loan for Trenton’s portion of costs on the 17th Street Bridge replacement project would allow Trenton to reduce debt payments at a projected savings of $93,000 over the remaining term with that final payment in 2027, the year the local transportation sales tax would expire.

It’s noted all the projected figures include the paid cost of issuance for bond counsel, placement agent, rating agency, disclosure counsel, and paying the trustee.

The city council accepted three appointments announced by Mayor Linda Crooks.  Appointed to the Trenton Utility committee are Clint Trump and Zane Robinson who will serve on the five-member committee that will oversee TMU along with three members of the council. Appointed to the Police Personnel Board was Jason Shuler who will replace Rex Stuart who chose not to continue on the board.

The council approved recommended purchases of a used dump truck for the street department and a new pickup for the sewer department. The 2006 International dump truck, with a diesel engine and new transmission, will be purchased for $39,500 from a Kahoka company. It only has 43,000 miles and replaces one that has been removed from service. The additional cost of some “adds on” deemed necessary is $20,350.

For the sewer department, the city went with a statewide bid for a 2021 pickup and had a choice between a Chevy or a Ford. The council voted to make the purchase of a Chevrolet Silverado 1500 regular cab pickup with four-wheel drive. The cost-plus options are $25,986 which was some $2,000 less than a Ford pickup from Joe Machens Ford Lincoln. The Chevy will replace an older pickup.

A contract was approved for Jason Shuler Concrete and Construction of Trenton to remove and replace the concrete driveway on the north apron of the fire station. The cost is $25,573. Administrator Urton said the work is to be done by April 30th.

Urton reported the recent auction of Trenton’s surplus property on Purple Wave has generated $30,000. The wrecked street sweeper is being re-advertised for sale online.

Approval was given to a police training agreement between a recruit and the city which is described as an incentive to help fill police officer vacancies. It states the city of Trenton will reimburse a recruit for police academy training regarding tuition and fees with the understanding the recruit would commit to working at least three years for the police department.

Chief Rex Ross said he’ll present the offer to recruits attending law enforcement academies in Warrensburg and St. Joseph. The offer is based on a recruit completing and receiving Missouri Peace Officer Standards Training. Ross indicated the value of the incentive is from $6,000 to $7,000. The agreement also stipulates if the officer leaves before three years are up, he or she is to pay back an applicable portion that the city committed for their training.

Councilman Glen Briggs offered the council’s praise to the street department working on snow removal and TMU dealing with power outages caused by high winds.

The city council reviewed net metering customers, those who have solar panels at seven locations. The first one came in 2014 from Gary Hooyman at 5006 Lake Manor Drive. The two most recent applications from late 2020 are from Tyler Busick at 605 West Crowder and John Boman at 802 West Crowder. Other locations include Trenton High School, Black Silo Winery at 4028 East 10th street, Cody Oakleaf at 303 East 7th, and Diane Zeiger at 802 Monroe Street.

Seven council members attended in person or by zoom. Duane Urich was absent.