Marion City Council approved an ordinance refinancing the general obligation bond that the city is paying off that went toward the industrial park in 2001.
With the bid through Commerce Bank, the city will pay 1.975 percent average interest over 10 years on $840,000. The way the bond was originally structured the city would pay about 5 percent interest on $800,000. The city will save $114,606, 13.13 percent of the refunding issue.
“Anything above three percent would have been a savings,” Ransom Financial accountant Rose Mary Saunders said. “This is significant.”
The board also approved a resolution allowing Saunders to sell and deliver general obligation bonds.
Her financial advisory role was also renewed. She will be paid $5,000 on the first $500,000 she saves the city on debt financing. If she saves the city $1.5 million or more, she will be paid $9,250 plus $2.50 per $1,000.
For loans, grant writing and administration, utility rate reviews, and cost benefit analysis, Sanders will make $85 an hour plus expenses.
The council approved a Christmas light credit worth $10. Residents who use Christmas lights can get $10 off their electric bill in January.
Clerk Angela Lange estimated that a normal amount of Christmas lights accounts to between $5 and $10 on a monthly electric bill. The last time the city honored a credit, 214 residents took advantage, costing the city $2,140. If every Marion resident claimed they used lights, city administrator Doug Kjellin said city crews could not check if residents used lights, it would cost the city about $10,000.
Council member Chris Meierhoff voted against the credit. Council member Steve Smith arrived late and did not cast a vote, however, he said he would have voted against the credit had he been in his seat.
Mayor Mary Olson voted for the credit because of high utility bills during the summer.
In other business:
- The council approved the sale of scrap metal piling up at the city shop to the highest bidder.
- Olson proclaimed Nov. 13 through Nov. 20 American Education and National Family Week.
- Aerators were installed in the no. 1 cell at the wastewater lagoons Nov. 7.
The next Marion City Council meeting will be 4:30 p.m. Nov. 28.