The Tribune Democrat, Johnstown, PA

Local News

March 30, 2013

City officials want to refinance debt

JOHNSTOWN — The city of Johnstown is looking to refinance its 2006 bond series with the hopes of saving possibly $330,000.

Currently, the government is paying 4.1 percent interest on the more than $6 million principal. The rate is scheduled to steadily rise and eventually reach 4.55 percent. Johnstown’s finance department and City Council feel they can get a better arrangement, possibly as low as 1 percent.

“Due to the current market conditions and the low interest rates (available), there are immediate savings that can be realized from refinancing the bond,” said Carlos Gunby, the city’s finance director.

If a new payment plan can be put in place, Johnstown could keep more money for capital projects.

“It’s the difference in interest rates that enables you to have that savings,” said CIM Investment Management Inc. representative Marcia Rojcewicz, the bond project’s manager.

Rojcewicz told council the city is in a better financial position, since its credit rating has improved by two steps from Ba (Moody’s) to BBB (Standard & Poor’s), a bump from the speculative level to medium safe. “There’s improvement which can be measured over the last couple of years,” she said.

Officials are not looking to change any other terms of the bond. The plan is for the series to close on Dec. 31, 2036. Counting interest, the total remaining amount left to pay on the bond is $10.5 million.

“I was very, very adamant that we would not change spending terms and that the payments be as close as humanly possible (to what they are now),” said City Manager Kristen Denne.

1st Summit Bank is the bond’s current agent.

“It would be more advantageous for the city to attempt to stay with 1st Summit, just because there is the history there and they already have the funds, so there wouldn’t be a need to transfer funds and so on and so forth, which would ultimately thus add expense, which kind of defeats the purpose of the re-fi,” Gunby said.

Click here to subscribe to The Tribune-Democrat print edition.

Click here to subscribe to The Tribune-Democrat e-edition.

1
Text Only | Photo Reprints
Local News
  • foust_25 Teen shot in Oakhurst

    A 16-year-old New Jersey boy was taken to Conemaugh Memorial Medical Center on Thursday after being shot three times in the Oakhurst section of Johnstown.

    July 24, 2014 1 Photo

  • Audit: City overspent by $700G in 2013

    Legacy costs contributed significantly to the city of Johnstown coming up $689,000 short in its core services funding during 2013.

    July 24, 2014

  • Kuzma, jonathan Guilty plea in hammer death

    The Johnstown man who authorities said killed his father with a hammer last year pleaded guilty Wednesday to criminal homicide, authorities said.

    July 24, 2014 1 Photo

  • quecreek rescue Events to mark anniversary of Quecreek rescue

    When word spread that nine Quecreek miners were trapped underground in July 2002, Bill Arnold’s dairy farm quickly became the rescue effort’s ground zero.

    July 24, 2014 1 Photo

  • Man charged with running down fire official at accident scene

    A Mineral Point man has been charged with running down a fire police official at Monday’s fatal crash scene on William Avenue in Jackson Township.

    July 25, 2014

  • Tribune Treasure!

    July 25, 2014

  • Huger, Stephen Accused Hornerstown shooter will stand trial

    A Johnstown man will stand trial in connection with a July 12 shooting in the Hornerstown section of the city.

    July 24, 2014 1 Photo

  • Board names Zahorchak’s successor

    The Greater Johnstown school board at a special meeting Thursday named a superintendent to replace the retiring superintendent, rehired its last business manager and approved other administrative appointments.

    July 24, 2014

  • Pasquerilla, Mark Pasquerilla recognized as arts patron

    First lady Susan Corbett announced Thursday from the Jimmy Stewart Museum in Indiana, Pa., that Mark Pasquerilla of Johnstown has earned the Patron Award from the 2014 Governor’s Awards for the Arts.

    July 24, 2014 1 Photo

  • Ebensburg gets ready to party

    Party down with a shutdown.
    Downtown Shutdown, a street party featuring music and food, will be held from 7 to 11 p.m. Friday in downtown Ebensburg.

    July 24, 2014

Poll

What is the biggest key to reducing gun violence in Johnstown?

Tackling the area's drug problem.
Controlling folks moving into city housing.
Monitoring folks in treatment centers and halfway houses.
Tougher sentencing by the court system.
More police on the streets.

     View Results
House Ads