DUBOIS – The refinancing of three City of DuBois loans was approved Wednesday by the DuBois-Sandy Consolidation Joint Board. The refinancing plan, if approved by DuBois City Council, is expected to save approximately $100,000 per year in interest payments for the next 15 years.

Also, following lengthy debate, the board gave the go-ahead to the DuBois Volunteer Fire Department to develop specs for a new ladder truck. Once the specs are ready, it is estimated to take up to five years for the truck to be built.

The joint board also voted to approve the listing of three employment positions in the city and township – Sandy Township Engineering Technician, Sandy Township Police Officer, and City of DuBois Assistant Manager / Economic Development Coordinator.

 

Here are notes from the July 17 DuBois-Sandy Consolidation Joint Board meeting:

Refinancing

• Tim Frenz of Janney Montgomery Scott, LLC presented the refinancing proposal to the Joint Board for three of the City of DuBois’ five loans.

o   The PennVEST and Next Tier loans are not part of the refinancing.

o   PennVEST because it is already at a low rate.

o   The Next Tier loan because it is locked in at 2% until 2026.  Including it in the refinancing would increase the interest payment the City would need to pay.

• The remaining three loans have terms going out to 2040 with interest rates around 6%.  This results in a yearly payment of $1.2 million, according to Frenz, just to the interest of these three loans from S&T Bank.  The total debt being around $15 million.
• The bond issuing to refinance these loans is expected to cost $30-40 thousand in one time transaction costs.  Two sets of bonds will be sold.

o   Series A will be for refinancing.  This will lead to a savings of around $100 thousand a year until 2040.  The amount of debt and the length of term remains unchanged.  It will just be a lower interest rate.

o   Series B will be up to the $2.5 million promised to the City of DuBois through a Commonwealth of Pennsylvania RACP grant.  The state will give the, up to, $2.5 million as reimbursement after the municipal building project is both finished and paid for.

• The Series B bonds will give DuBois the money to pay for the project.
• These will have an interest payment of $50 thousand a year.
• The Series B bonds will be sold with a maximum length of running to May 2027 with the option of being paid off as early as May 2026.
• The debt will roll over into the Consolidated City of DuBois seamlessly, as would the current high interest loans if the refinancing did not occur.
• The Joint Board present voted unanimously in favor of the refinancing.  The refinancing now needs to be approved by the City of DuBois separately.

Fire Department

• After much debate, the DuBois Volunteer Fire Department was approved to work on the specs they want for a new ladder truck.  Once the specs are agreed on it is expected to take 4-5 years for the truck to be built.  The ladder truck is needed for the hospitals and high rises within the City.
• In DuBois, the last couple vehicles were not paid for by the City of DuBois, but through the fire departments finding the funding themselves.
• The vote was 7 – 2 with Sam Mollica and Bill Beers dissenting.  The motion was a straight up approval for specing out the ladder truck.  The person who made the motion, Barry Abbott, refused to allow Beers’ requested change that the process stopped at the specs and did not authorize any contracts being signed.

o   Mollica stated he would have preferred to have modified the motion.

• Bringing up the ladder truck in the Joint Board meeting led to spirited discussion as this was the first time it was officially brought to the attention of some of the Board.

o   Beers took issue that it wasn’t passed to the Joint Board through the fire subcommittee.

o   One fire fighter stated they were confused by the scope of the fire subcommittee.  They were under the impression it was only supposed to work on the bylaws, not administrative work.

o   Beers had concerns with DuBois only specing out the truck.  With what fire houses will end up being used the length of the truck was a concern.  This new ladder truck will need to take into account challenges it could experience in Sandy Township that it wouldn’t if specced to be in the City primarily.  There were two tank engines in the municipalities soon needing replacement as well.

Open Positions

• The Joint Board voted to approve the three positions the City and Township as being fillable.  The Assistant Manager / Economic Development Coordinator was debated.

o   Sandy Township Engineering Technician

o   Sandy Township Police Officer

o   DuBois Assistant Manager/ Economic Development Coordinator.

• There was a brief discussion over the police officer in light of the coming consolidation and the possibility of needing to cut costs.

o   Sandy Township Police Chief Kris Kruzlak stated this officer position needs filled.

o   There are officers nearing retirement age that could be used to cut costs if the consolidated budget required trimming the police department.

• The AM/EDC position passed with a 7-2 vote with Jim Aughenbaugh and Shane Dietz being the dissenters.

o   Aughenbaugh stated his concern was whether this should be two different positions.  At the City meeting approving of this job Aughenbaugh voted in favor of the position, but stated he had wanted more information before the final vote.

o   Dietz voted against the position a second time.  Continuing his questioning as to why the Asst Public Works Director / Redevelopment Authority Director Joe Mitchell couldn’t fill the position.  Dietz stated he saw the two as having similar duties.  Mitchell’s two positions were recently scheduled to cease to be.

• The Joint Board generally were in favor of the position existing.  The importance of someone whose job was to help manage direct and oversee bringing jobs and industries to the region.  Others shared Dietz and Aughenbaugh’s question on whether the economic development should be spun off into a unique position or if the redevelopment authority could be adjusted to serve a new purpose.