As Interest Rates Fall, City Approves Refinancing; Issues At 22nd & Pleasant Plain Discussed

The Trenton City Council took steps Monday evening to save the city more than $600,000 in interest payments on three loans.
The council approved an ordinance that involves the refinancing of three separate bond issues for the water project, the sewer project and the 17th Street Bridge replacement project. Sarah Smith of Gilmore and Bell and Charlie Zitnik of DA Davidson were in attendance, with Zitnik telling the council that because the city was able to maintain its good bond rating during COVID-19 and “exceedingly well-received credit” the bonds were refinanced Monday at a rate that will save the city $658,000 without extending the terms of the loans. He said the refinancing was a full public offering, with individuals and bank investors buying the bonds.
Ms. Smith said the collateral for the three loans remains the same, with the bridge, the revenue from the sewer system and the revenue from the water system being the collateral.
The interest on the 2012 water bonds had been 3.2 to 4.4 percent, with the new rate being 2 to 3 percent, while the rate on the 2014 sewer project was 3.2 to 4.75 percent. The new rate is .5 to 3.1 percent and the rate for the 2018 17th Street Bridge loan was 4.42 percent and is now 2 percent. Zitnik said the savings amount is based on the average interest rate the city had been paying and the average rate it will be paying. He said the city would be eligible to refinance again in 2029 if rates at that time are favorable.
The council heard from Scott Newkirk, who lives at the intersection of 22nd Street and Pleasant Plain. He said the truck traffic in the area is causing problems,including damaging his yard. In addition, he said vehicles are speeding through the area, including motorcycles that he said are traveling at speeds of 60 to 70 miles per hour. He was not only concerned about damage to his property from trucks that are traveling to the industrial park area, but also for the safety of children who live in the area. It was suggested that truck signage be placed at each entrance to town to direct trucks to the industrial area because by the time they see a “no truck” sign, they are already in a residential area, most likely because their GPS system has taken them through that route. In addition, it was suggested that “No Truck Traffic” signs be placed on Industrial Drive in hopes the trucks will use Oklahoma Avenue rather than drive through a residential area.
Mayor Linda Crooks, who joined the meeting by Zoom, said she has visited with Newkirk about the issue in the past and would take another look at it to see if something can be done.
Second Ward Councilman Marvin Humphreys told the council he had attended the May 5 park board meeting in which it was stated that if more lifeguards cannot be found, usage of the Trenton Family Aquatic Center may have to be altered, for example, not opening a portion of the pool at certain times. Third Ward Councilman Robert Romesburg said that he has seen comments on Facebook about the fact that lifeguards are not even paid minimum wage for a job that involves protecting and perhaps saving the lives of swimmers. He was informed at the meeting that the city is exempt from paying minimum wage and suggested that if there is any way to increase the pay, it should be done.
In his report, City Administrator Ron Urton said the bridge deck concrete is complete on the 17th Street Bridge and work is being done on the retaining wall on the west end. Fill for the approaches is also being brought in and the railings will start to go up this week. He said Trenton Municipal Utilities crews have been completing the work needed at the new location of Orscheln and company representatives were very complimentary of their work and cooperation. He also noted that a ribbon cutting/open house at the new fire training facility may be in the works.
There was no discussion of the location of a Verizon tower or the proposed Historic Preservation District, both of which drew public interest at last week’s Planning and Zoning Commission meeting. City Clerk Cindy Simpson said both issues will be taken up by the city in June.
The next regular meeting of the council is scheduled for Monday, May 24.