New London approves capital budget
Eight capital equipment and project expenditures, totaling $187,755, were approved by the New London City Council at its meeting, Tuesday, Feb. 12. The capital equipment and projects approved were in the 2013 capital projects budget.
A frontend loader snowplow for Public Works for the amount of $13,500 was unanimously approved. Three projects for Public Works were also approved. A GIS Mapping Project for the amount of $25,000 was unanimously approved. This project was started two years ago. The Normal Street Program was approved unanimously for the amount of $30,000. Approval of a city garage design for the amount of $50,000 was approved 9-1. Tom O’Connell voted nay.
A pick-up truck for the Parks and Recreation Department for the amount of $31,000 was unanimously approved. Replacement of the air conditioning units at the library was also unanimously approved for the Parks and Recreation Department. The cost approved for the replacement was $13,800.
A weather siren, at a cost of $5,850, was unanimously approved for the Police Department.
A server virtualization project was unanimously approved for an amount of $18,605.
After combining these approvals with previous approvals, there is $15,248 remaining in the 2013 Capital Funds Allocated budget. It started with $343,404.
A resolution authorizing the issuance and sale of $900,000 General Obligations Promissory Notes, Series 2013A was unanimously approved.
Prior to the vote, Phil Cosson, senior financial advisor/director at Ehlers, addressed the council about the bids received from financial institutions.
“I’m thrilled with six bids,” Cosson said.
The bids were received from UMB Bank, N.A., Kansas City, Mo.; Bankers’ Bank, Madison; BOSC, Inc., a subsidiary of BOK Financial Corporation, Milwaukee; Cronin & Company, Inc., Minneapolis, Minn.; Hutchinson, Shockey, Erley & Co., Chicago, Ill; and Citizens Bank, Flint, Mich.
UMB Bank’s bid included the lowest “True Interest Rate” of all the bids at 1.4024 percent over nine years. This was the bid the council chose.
Prior to the bidding process, the projected amount of interest to be paid over nine years was $113,010. The actual interest that will be paid over nine years will be $65,757.
The interest rate in 2014, the first of the nine years of the promissory notes, will be 0.450 percent and gradually ascend to 1.8 percent in 2022, the final year.
Cosson also informed the board that Moody’s assigned an A1 rating to the city of New London’s $900,000 General Obligation Promissory Notes, Series 2013A.
By a unanimous vote, the council approved a resolution supplementing Resolution No. 698, as amended; authorizing the issuance and awarding the sale of $3,475,000 Sewerage, Water and Electric System Mortgage Revenue Refunding Bonds, Series 2013B of the city of New London, Outagamie and Waupaca Counties, and providing for the payment of the bonds and other details with respect to the bonds.
This resolution is the refunding of existing debt.
Cosson informed the board that Ehlers received four bids. Bids were received from: BOSC, Inc., a subsidiary of BOK Financial Corporation, Milwaukee; Hutchinson, Shockey, Erley & Co., Chicago, Ill.; Bankers’ Bank, Madison; and Baird, Milwaukee.
BOSC, Inc.’s bid included the lowest “True Interest Rate” of the four bids at 1.8081 percent. This is the bid the council chose.
The interest rate will be 2 percent for the first nine years of the 11 year bonds. The interest rate in year 10 will be 2.1 percent and 2.2 percent in year 11. The bonds that are being refunded were issued in 2003 and had interest rates of 4 percent to low 5 percent, Cosson said.
Cosson said the refunding bonds were estimated to save at least $25,000 during each of the 11 years, for a total of $293,414. The winning bid will actually save around $40,000 for each of the 11 years for a total of $450,989.
Cosson also informed the board that Moody’s downgraded to A3 from A2 the rating on the city of New London’s outstanding combined utility enterprises revenue debt; and it assigned an A3 rating to $3.6 million Sewerage, Water and Electric System Mortgage Revenue Refunding bonds, Series 2013B.
Cosson told the board he was surprised and disappointed by the downgrade. He said there isn’t much that can be done regarding recourse, but the city might be able to request a review of the rating at some point in the future.
Roof repair contracts
Bids for three of five roof repair projects were recommended for approval. The council unanimously approved the Parks and Recreation Department Committee’s recommendations.
It approved a bid of $16,480, plus $2,400 for alternates from Weinert Roofing for repairs to the municipal building roof. It was the lowest of five bids.
It approved a bid of $43,814 from Quality Roofing Inc. for repairs to the city hall hose tower roof. It was the lowest of four bids.
It approved a bid of $42,830 from Quality Roofing Inc. for repairs to the senior center roof. It was the lowest of five bids.
Only one bid was received for repairs to the library roof, as well as the swimming pool building roof. At the Parks and Recreation Committee meeting held, Tuesday, Feb. 5, Chad Hoerth, director of parks and recreation for the city of New London, addressed the committee about a different option regarding the repairs to the swimming pool building roof. This option involved removing it from the total project involving Industrial Roofing Services. The committee agreed to remove the swimming pool building roof repairs from the plans submitted by Industrial Roofing Services and seek other options for replacement.
At the same committee meeting, the committee agreed to bid out the library roof repairs again because only one bid was received, and it came in higher than expected.
The council unanimously approved adopting a resolution assigning fund balances in various accounts.
It also accepted the written legal advice the city received concerning possible litigation. Lori Dean voted nay.