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Category: Borrow Money
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YOUNGSTOWN

The board of control agreed to have the city borrow more than $4 million for the trucks and bins it will use for its residential garbage-collection program.

The board voted at a Friday special meeting to borrow money from Huntington Public Capital Corp. of Columbus over 10 years with a 2.4 percent interest rate for the trucks, and over seven years with a 2.25 percent interest rate for the garbage bins.

The eight garbage trucks cost $2,455,200. The city will pay $279,000 annually for 10 years to Huntington. The $2.79 million payment includes $334,800 in interest.

The 22,000 96-gallon bins for Youngstown's residential garbage-collection customers cost $1,149,542. The city will pay $179,500 annually for seven years to Huntington. The $1,256,500 expense includes $106,958 in interest.

The total interest cost is $441,758.

The low interest rates "demonstrates the continued positive credit quality of the city," said Finance Director David Bozanich, a board of control member.

"We're satisfied with the rates we received."

Read more about the situation in Saturdays Vindicator or on Vindy.com.