David Pistorius with First Midstate Inc. appeared before members of the Chenoa City Council Tuesday night to discuss bonds.
There is an opportunity for refunding due to where interest rates have been. Refunding for bonds is the same as refinancing for mortgages. This could lower payments a bit.
“I’ve never seen interest rates this low,” explained Pistorius.
The bond world came to a crashing halt when COVID hit last year as it became a crazy time for the markets. Things started to settle down again after July 4 and since August, rates have started to trend upward but are still favorable.
“There are two ways we sell bonds,” Pistorius stated. “One is as a public offering and one is as a private placement.”
An alternate revenue bond is not a tax levy paying these bonds back. Private placement eliminates costs up front and local banking institutions are used.
“It has been a popular move here recently. We’ve been successful with it.”
Pistorius said he wanted to provide the city with the information so they could “digest” everything. Mayor Chris Wilder told Pistorius the city would start looking into this and discuss it further with the attorney and accounting firm.
In another matter, the council appointed two new members to the Chenoa Economic Development Group, including Ashley Butler and Cristina Vercler. Wilder feels the appointments will be beneficial for the city.
An ordinance approving the release of obligations for a TIF Redevelopment Agreement was authorized. The agreement was between the city and Vicky Weaver and Beth Ellis DBA Vicky’s Crew Tumbling and Gymnastics. According to the mayor, there was an agreement in place for rental reimbursement but due to unfortunate circumstances, Vicky’s went out of business.
Council members also discussed weight limits for McLean County Road 3000 North in which a portion of the road falls into the city limits between Division and Route 66. The city assumes responsibility for that section of road as the land was annexed. The road will follow the weight limit ordinances of other nearby roads. Attorney Steve Mann will work on this.
“It does make sense,” said Mayor Wilder.
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