The city hopes to take advantage of changing financial markets with its plan to refinance bond debt from 2010 and 2011.

Wastewater revenue bonds were issued those years for improvements at the wastewater treatment plant and the city’s sewer system with an outstanding total principal balance of $9.1 million.

The city seeks to lower interest rates on the bonds.

“We have an exceptional opportunity right now to refinance our outstanding bond balances,” City Manager Bruce Slagle said.

The bonds are redeemable this year at face value, which allows for the reduced interest rate, he said.

“The bond amount is estimated at this point $1.44 million less if we refinance them,” Slagle said.

This would save the city $3.18 million in interest, and would allow the bonds to be paid off in 2032 and 2024, respectively, rather than in 2040 and 2032.

The council resolved to sell the refunding revenue bonds. The next steps in August are a bond rating call and closing on the sale.

BUDGET WORK SESSION

The council will meet with city department heads 4 p.m. Wednesday for a budget work session as it prepares to close out the 2019-20 fiscal year. The new fiscal year starts Oct. 1.

GARFIELD PARK UPDATES

While plans for improvements at Garfield Park centered on an entrance apron earlier this month, community discussions have taken place that found a different use for the $25,000 fund in the city’s 2019-20 budget.

The council reviewed a change order with Flowmaster Construction, which already was in Mexico as part of a project for street patching and curbing.

Council member Chris Williams voiced concerns that the change in the scope of work from the entrance apron to replacement of the park shelter’s concrete slab and construction of a 90-foot Americans with Disabilities Act compliant sidewalk to the shelter may violate city rules.

“This is a totally different project,” he said. “So, I feel like we are on the line here doing this correctly because I feel this should have been put out for bid again.”

Williams wanted to know if the concrete work for the slab and sidewalk circumvents bid rules by doing it through the modified change order.

While the Parks department has $25,000 in the budget for this project it is estimated to cost $30,000. The remaining $5,000 is coming from project reserves.

“I looked at costs of other shelter floor projects and this is a good price,” Parks and Recreation Director Chad Shoemaker said.

The slab and sidewalk project is less than 50% of the overall street patching and curbing project, so change orders are allowed, he said.

“I do think it falls within the rules or we would not have have brought it,” Shoemaker said.

The change order was approved and park improvements will move forward.

IN OTHER BUSINESS

Central Missouri Honor Flight is seeking $5,000 from the city’s tourism tax to advertise for the organization’s fundraising tractor pull Aug. 15 at the Audrain County 4-H Center. The Mexico Tourism Commission recommended providing up to $2,500, which the city council approved.

HomeBank has requested the city take over ownership and maintenance responsibility of a manhole and 160 feet of sewer at its location at 2977 S. Clark St. It had extended sewer lines to service the branch. The council approved the easement agreement and ownership and maintenance responsibilities with HomeBank.

The council approved temporary easements for Phase 1 of the sidewalk construction project on Muldrow Street from Jackson to Quisenberry streets. Sidewalks will be replaced with those that meet ADA requirements.

The city will have a digester tank at the wastewater facility cleaned by Hunt Vac Services Environmental Specialists of St. Louis for $14,750. The equipment maintenance is funded through project reserves in the Wastewater Fund.

The city is continuing its updates of traffic and vehicle schedules, with regard to street signs. Traffic control signs are needed in the area of Fairground Street and Amelia Drive now that the Falcon Street extension project is complete. The council approved the schedule updates.

The city will end its ownership of a 12.5-foot wide alley bounded by Breckenridge, Mansfield, Morris and Fairground streets. The alley has seen no improvements or maintenance and is not used by vehicles. Alley ownership will revert to the neighboring property owners in equal portions. The city received the vacate request from Julia Redmon.

The city also will vacate a 20-foot wide utility easement between lots 2 and 4 in the Gallaher Smith Feutz Oak Acres Subdivision, except for the east 10 feet from the northeast property corner of lot 2 and the west 10 feet of the southwest corner of lot 4, per a request from Gary Yelton. Utility companies do not have facilities in that area and a neighbor had no objection. The property is in the 22000 block of Audrain County Road 814.

The city will buy a portable push camera inspection system for the wastewater treatment facility totaling $11,922 from Coe Equipment Inc. of Rochester, Illinois. The 2019-20 budget allows up to $15,000 for the purchase of the CCTV unit as a replacement of the current inspection system.

Bob Allen, Dustin Blue, Rick Giboney, Dennis Mommens and Brian Haeffner were appointed to the Building Code Board of Appeal. Allen will serve through 2025 via reappointment, while Giboney will serve through 2024, Blue through 2023 and Mommens and Haeffner through 2021 as new appointments.

Martin Keller was reappointed to serve on the Mexico Housing Authority Board for another term.