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WILKES-BARRE — While he didn’t have the overall debt owed by the city at hand Thursday night, Mayor Thomas Leighton had the savings from a recent bond refinancing committed to memory.
The city saved $1.8 million in the sale of $30 million in bonds to refinance those issued in 2005 and 2007, he told city council at its regularly scheduled meeting.
“Just to give you an example of where we are and where we were, that money we had to use back in 2005, we had no credit rating. The bond insurance cost $1,376,300. The bond insurance on this recent issue $47,602. That tells you how important your credit rating is, ” he said.
Leighton, as he has done before, touted the value of the A- with a positive outlook from Standard & Poor’s Credit Rating Services. An obvious benefit is the ability to borrow money at a lower interest rate, he noted.
“That’s something I’ve been stressing for the last 11 years as mayor that we would restore our credit rating so we could restructure our debt and save the taxpayers money,” he said.
Councilman Tony George, who was excused from the meeting, voted against the refinancing last year. Leighton did not include him in his praise for the others who voted for it — Vice Chairman Bill Barrett, George Brown, Chairman Mike Merritt and Maureen Lavelle.
“You just saved the taxpayers $1.8 million and I want to personally and publicly thank you,” he said.
City resident Sam Troy’s disagreed with the mayor’s approach.
“I think generally speaking taxpayer accountability has been totally lacking on the part of council members here. There’s no commitment to trying to cut expenses to pay down that debt. It does exist, mayor. Maybe you’ll tell me there is no debt. I don’t know,” Troy said
Leighton did not answer Troy’s question about the extent of the debt.
“If you’re disappointed that this administration, this mayor, this council just saved the taxpayers $1.8 million,” Leighton said, “I don’t understand what you’re missing there.”
“That’s what you say,” Troy said.
He was more receptive to assistant city attorney Bill Vinsko’s report that there is movement on the city’s being able to recoup the $575,000 it cost to secure and later demolish the Hotel Sterling in 2013.
As a result of the demolition, the city positioned itself ahead of all other lien holders, Vinsko said.
“I will tell you that the results of that first lien position are going to be something that you’re going to be proud of very shortly. I can’t go into any more detail on it at this time, ” Vinsko said.
Council voted unanimously to approve four resolutions on the agenda, including:
• The sale of vacant land at the rear of 36 S. Grant St. to Charles Crumbley for $500
• The purchase of a recycling packer truck for $164,000. The cost to the city is $16,400 from the Liquid Fuels account
• Designating Wilkes-Barre Township police as the first responder department to the city in the event of an emergency.