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.

Text Only | Photo Reprints
Local News
  • Fire1.JPG Neighbors rouse residents from West End fire

    Vincent Freedman was asleep in a duplex in Johnstown’s West End early Monday when he was awakened by pounding on the door.

    July 21, 2014 3 Photos

  • mundys corner wreck 22 Motorcyclist injured on Rt. 271 in Mundys Corner

    An accident reconstruction team was brought in to process a crash scene involving a motorcycle and tri-axle truck on Route 271, investigators said.

    July 21, 2014 1 Photo

  • Cause of West End fire still undetermined

    The cause of a five-alarm fire early Monday morning at a vacant structure on the 500 block of Dorothy Avenue in Johnstown’s West End has not yet been determined.

    July 22, 2014

  • Rents change with new rules

    A change in federal housing regulations raises the rent for 28 public housing tenants and reduces the rent for 29 tenants in Johnstown Housing Authority communities.

    July 21, 2014

  • Memorial programs recognized

    A national hospital ranking report recognizes Conemaugh Memorial Medical Center as high performing in four categories.

    July 21, 2014

  • Tribune Treasure!

    July 22, 2014

  • Residents seek Sonman memorial

    Relatives of workers involved in one of the biggest mine disasters in the region’s history are working to keep the victims’ memories from fading. Next year marks the 75th anniversary of the 1940 Sonman Mine explosion, which claimed 63 lives.

    July 21, 2014

  • Foul play ruled out in train fatality

    Foul play has been ruled out in the death of a Windber man found struck by a train near Seward early Sunday, investigators say.

    July 21, 2014

  • Correction 07/22/2014

    July 21, 2014

  • Concussion prevention project progressing

    A Johnstown-area hospital and school district are a step ahead of the president's call for more research into sports injuries, having developed a groundbreaking concussion-prevention program aimed at helping all athletes, particularly students, avoid brain injuries.

    July 21, 2014


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