The Herald, Sharon, Pa.

Local News

March 28, 2014

Refinancing should put $247,000 more in coffers

HERMITAGE — The city of Hermitage will realize about $247,000 by taking out a bank loan to refund a 2009 bond issue, netting $100,000 more than officials had been predicting just a month ago.

City commissioners on Wednesday approved refinancing about $2.3 million in bonds and taking out a loan with NexTier Bank.

The savings will be put into recreation and infrastructure projects such as road paving and storm water drainage work, but specific projects have not been identified, said City Manager Gary P. Hinkson.

The city’s bond consultant, Michael Zubasic, managing director of the public finance division of PNC Capital Markets, Pittsburgh, told  commissioners in February they could earn about $150,000 in savings by refinancing the bond issue, paying off the old issue then issuing new bonds at lower interest rates.

Bonds are investment vehicles that people buy, with the issuer getting up-front funds for specific uses. The city has issued bonds numerous times over the years for recreation, road and storm water projects.

However, Zubasic also told officials they might get an even better deal by taking out a loan from a bank instead of issuing new bonds. The interest rate on the loan might be higher than on bonds, but the costs would be less, he said.

City officials solicited proposals and received three, finding NexTier’s interest rate the lowest, 2.1 percent, Hinkson said.

The loan will be paid off in 2023 and the city’s cumulative debt service will be the same as it was prior to the refunding.

The actual refunding will be done in May, said bond counsel Lisa Chiesa of the law firm Thorp Reed and Armstrong, Pittsburgh.

“I think it’s a great rate,” said Commissioner Rita L. Ferringer.

The interest rate on the bonds averaged 4.25 percent a year.

1
Text Only
Local News
  • CIRT team in Jackson Center Man arrested after shooting standoff

    One Jackson Center man is recovering from a bullet wound, and the borough resident accused of shooting him sits in jail after a long night of drinking that state police say turned into a case of attempted homicide.

    July 31, 2014 1 Photo

  • Sharon Speedway location City on track for new Speedway store

    Speedway is lining up its administrative and bureaucratic cones on plans for the gas station and convenience store chain to zoom into downtown Sharon.

    July 31, 2014 1 Photo

  • Guards, county OK deal

    County officials and guards at the Mercer County Jail have reached a tentative contract agreement that, if approved, halts the idea of privatizing operations at the facility.

    July 31, 2014

  • Doss: Public has right to know

    A major part of Farrell council’s work session Monday was spent deciding whether or not to inform the audience about an unofficial police proposal from the City of Sharon.

    July 30, 2014

  • Budget falling short despite tax hike

    Farrell residents may have seen an income tax increase this year, but the city isn’t seeing the extra dollars City Manager Michael Ceci budgeted for.

    July 30, 2014

  • oakwood graves 1 Resting together

    Visitors to Oakwood Cemetery would see many  familiar local names if they looked down the hillside to the left just inside the gate on Sharon’s North Oakland Avenue.

    July 30, 2014 3 Photos

  • Police: Kids in car were OK

    The mother of two young children was drunk and passed out when police found them all in a car parked along a city street, Sharon police said.

    July 29, 2014

  • To talk – or not – about police

    The mysterious agenda item, “No. 10,” at Farrell’s council meeting Monday became the center of a heated workshop and business session.

    July 29, 2014

  • Community thanks its first-responders

    Sharpsville honored its emergency responders Sunday at an event that included Mertz Towers residents as special guests.

    July 28, 2014

  • Drilling boom challenges state inspectors

    The state’s 83 well inspectors face a daunting enough challenge keeping tabs on 120,000 active oil and gas wells that have been drilled over the last century.

    July 28, 2014

  • Kidds Mill Covered Bridge A span of time

    Four generations of the Cadman family have enjoyed the Kidds Mill Covered Bridge, which is in Pymatuning Township near where the family’s ancestral farm is located.

    July 28, 2014 3 Photos

  • Intruder hurts woman, takes $5

    A home invasion in Hermitage Friday night sent an elderly woman to the hospital and netted the robber $5.

    July 27, 2014

  • national night out March against crime set for Aug. 5

    At the last Southwest Mercer County Regional Police Commission meeting, Chief Riley Smoot Jr. presented the number of incidents for each of the four communities in May.

    Farrell topped out at 819.

    July 27, 2014 1 Photo

  • high street trail Peaceful pathways

    History buffs and picnickers in the Shenango Valley won’t have to drive to Sharpsville to hang out at the old Erie Canal extension lock. They’ll soon have the option to walk or roll in on bicycles and even powered chairs to visit Canal Park near the outflow of Shenango Dam.

    July 27, 2014 1 Photo

  • balloonquest1 Balloon Quest celebrates 25 years

    Today is the final day of the 25th annual Western Pennsylvania Balloon Quest at Scotland Meadows Park.

    July 27, 2014 1 Photo