Latrobe eyes expansion of $2.7M bond issue, OKs blight inventory, sharing ordinance officer

Latrobe Council is expected this month to consider refinancing 2016 bonds while adding $550,000 to the issue to pay for capital projects.

Bond consultants will present a proposal for council approval at a special meeting before the March 22 agenda session, according to Michael Gray, city manager.

At this week’s council meeting, several members and Mayor Rosie Wolford expressed support for Gray’s recommendation to refinance $2.7 million in outstanding bonds to take advantage of low interest rates while issuing the additional bonds and extending the term of the financing package by 3½ years, from 2034 to 2038.

“It really doesn’t make any sense to take out an additional term loan at a later date. We have a good opportunity here and now,” said Gray, who has estimated refinancing the existing bonds could save the city $10,000 annually.

“I’m never really a fan of increasing the city’s debt, but the amount of increase is relatively minor compared to the list of capital projects that we must get done,” Councilman Ralph Jenko said. “With the low interest rates, it just makes sense to me to do it this way.”

Of the additional bonds, Gray said $39,000 would be used to rebuild stairs and an access ramp at the Courtyard Plaza, adjacent to the city’s parking garage. While a community development block grant is being sought for that project, he said, repairs also are needed to deteriorated garage cantilevers that overlook Weldon and Spring streets.

Improvements at the city’s solid waste transfer station, including replacement of an aging trash compactor and reimbursement of the recent $125,000 purchase of an excavator, also could be funded with the bonds.

Council approved DAC Digital Assurance Certification, LLC to provide IRS-required disclosure and dissemination services for the bond issue. According to Gray, an initial fee of $2,500 can be included in the bond issue, with subsequent annual fees of $1,000 due if the city stays with the firm.

Shared code enforcement, blight inventory OK’d

This week, council approved an agreement with nearby Derry Borough to share the cost and services of a newly hired ordinance enforcement officer. Shannon Cypher Hart, whose compensation was set at $46,000 plus benefits, is slated to work a flexible schedule of 30 hours per week for Latrobe and 10 hours per week for Derry.

Council also agreed to have Westmoreland County planning and redevelopment officials conduct a comprehensive inventory of blighted Latrobe properties and prepare a plan for prioritizing and addressing the sites. There is a $12,000 fee for the service.