JAMESTOWN – City officials Monday night continued discussion on borrowing $3 million to help pay for critically needed equipment and improvement to city-owned buildings and infrastructure.
During the discussion, council members asked about several pieces of equipment that would be purchased with the money, questioning whether or not cheaper equipment could be purchased. In response, city DPW Director Jeff Lehman explained that the price of the equipment the city is looking at is about as low as they are going to find.
Council members also asked about the term for paying back to money, with City Controller Joe Bellitto saying it will take a total of 20 years, although some portions of the payback will be blended in – meaning the city may be paying back a larger amount during the first part of the loan term, compared to how much it would be paying near the end of the term.
[LISTEN] Jamestown Mayor Sam Teresi Discusses Bonding Proposal
And Bellitto also said that the bonding resolution the council will likely act on during its January voting session will total $3,910,000. That’s because the city has an existing loan that it needs to pay off, totaling $910,000 and which was used to pay for communication equipment for the city fire, police and public works departments. Currently, that loan needs to be repaid within seven years.
But Bellitto said that considering interest rates would be the same, the city would be better positioned financially to include the $910 loan with the new $3,000,000 proposal, so that the repayment could be spread out over a longer period of time.
As a result, a bonding resolution totaling $3.91 million will go before the council when it holds its monthly voting session on Jan. 26.
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