City borrows $2 million for infrastructure repairs
Burton Avenue in Washington is scheduled to be repaired first.
The brick section of Burton Avenue will be paved.
New storm drains will be installed on Burton Avenue from Wilson to Coremont avenues in Washington.
Taking advantage of a lower interest rate, Washington officials voted Thursday to refinance a 2012 bond, saving $75,000 in interest and fees.
Mayor and council also approved a $2 million loan at 2.099 percent interest, the rate at which the bond was refinanced.
The money is to be used for stormwater management and road improvements.
“This gives us working capital,” said Councilman Joe Manning, head of the accounts and finance department. “We have a very bad infrastructure that needs work, storm sewers and bad roads. This will give us the money to do that.”
Manning said a May 26 increase of the city’s credit rating from an “A-minus” to an “A” from Standard and Poor’s helped secure the interest rate with PNC Bank.
The loan extended repayment by one year, from 2025 to 2026.
Councilman Ken Westcott, head of the public works department, said the loan will allow the city to address much-needed renovations. The city budgets about $150,000 annually for street improvements, which Westcott said is not enough to tackle the city’s stormwater system, which is more than a century old.
Paving alone costs about $10,000 per block.
“This is a tremendous asset,” he said of the loan. “It will allow us to get ahead.”
Plagued by flooding, Burton Avenue is scheduled to be repaired first, with new storm drains to be installed from Wilson to Coremont avenues. Crews will then pave over the brick road. The entire project is estimated at $250,000.
A workshop to prioritize other damaged roads, including Henderson, Michigan and East avenues, will be held.
In other business, the city’s health-care policy was amended to include a $250 deductible for mayor and council.
City employees had no health-care costs until May, when International Firefighters Local 2218 agreed to $750 individual and $1,500 family deductibles in the collective bargaining agreement of the city’s 21 firefighters.
“I felt there was nothing we could ask our employees to do that we wouldn’t do ourselves,” Manning said.
Because council and the mayor are paid $7,000 and $9,000 annually, Manning said he felt the $250 deductible was comparable.
Council accepted the resignation of Dwayne Durham as civil service commission chairman. Rich Beck was appointed to the post. Durham will act as an alternate.
Patti Dittman, Matt Miller, Jack Gallik and Nancy Ogden were approved as Business District board members.
The city building will be closed Wednesday in observance of Flag Day. The next regular council meeting will be held at 7 p.m. July 13. An agenda meeting will be held at 6 p.m. July 10.