At Tuesday night’s Knox City Council meeting, members heard a presentation about obtaining a bond to purchase a new fire truck. Fire Chief Kenny Pfost told council members that the vehicle they’re looking to replace is a pumper truck that is nearly 30 years old.
John Julien from Umbaugh provided the presentation and stated that the projected cost of the truck is approximately $600,000 and Umbaugh’s service charge would come in at about $50,000. Continue reading →
The Knox City Council has decided to refinance the remaining payments on the Knox Community Center. John Julien, from Umbaugh and Associates, appeared before the council to announce that re-bonding rates would go from 5.6% to 2.5%, and the city could realize savings from $14,000 to $25,000 over the course of the payments.
John Julien of Umbaugh and Associates came before the Knox City Council this week to bring them up to speed on the savings associated with refinancing the outstanding debt on the Knox Community Building. In 1997, the bonds on the building sold at a 5.5% interest rate. Julien told the Council that they could now be sold at 2.9%.
“$23,000 isn’t going to make the City rich, but it’s $23,000 that you don’t have access to right now,” said Julien. “In the grand scheme of things, I think it’s worthwhile for the City to pursue. The savings aren’t earth shattering, but it’s hard to imagine that interest rates are going to go much lower.”
The Knox City Council heard a report from Mayor Rick Chambers this week on a proposal to refinance the Knox Community Center bonds.
“John Julien from Umbaugh and Associates called the other day and he had mentioned this to Jeff (Houston) and I about a year ago,” explained Mayor Chambers. “The interest rates are down. The interest rates on our current loan is 5.5% and he thinks interest rates for 2.9% could be had if we put this out for bid. This loan will be paid off in 2019. Over the length of that loan, if we can bond for 2.9%, we would save $55,000. That’s a little misleading because we have $32,000 currently in an escrow account with First Monterey Bank. So, with the expense of redoing that bond and being able to use that $32,000 now, subtract the $32,000 from the $55,000 – over the course of this loan we’d be saving $22,000.”
Trying to be proactive in anticipation of the elimination of township government, the Knox City Council invited John Julien, of Umbaugh and Associates, to explain the formation of a Fire Territory.
As explained by Julien, contiguous areas or townships could form a Fire Territory. The Knox Volunteer Fire Department has an agreement with Center Township and a contractual arrangement with part of Jackson Township to provide fire service. Under a Fire Territory, all property owners in the created district would pay the same tax rate for fire protection. They would also receive a uniform level of service.