New Castle News

TOP STORIES

October 25, 2013

City to pay off loan early

NEW CASTLE — A budget reserve will allow the city of New Castle to pay off a federal loan three years early.

The city obtained the $2.6 million loan from the U.S. Department of Housing and Urban Development in 2002 for downtown improvements.

The city is scheduled to pay $225,000 a year toward the loan until it is retired in 2017.

Under its Act 47 recovery plan, however, the city is required to maintain a general fund reserve equal to 15 percent of annual operating revenue. Any money exceeding the 15 percent threshold must be committed to repaying debt, making additional contributions to the employee pension fund or funding projects through the city’s capital improvement program.

According to the Act 47 coordinator, a 2012 audit shows the city has approximately $800,000 above the 15 percent threshold in the general fund. To comply with the recovery plan, the coordinator has recommended using that money to pay off the loan.

In a resolution approved by city council last night, the loan will be paid in full on Feb. 1, 2014.

The coordinator said paying the loan ahead of schedule will save the city $91,000 in interest and reduce the amount that has to be budgeted for debt service by $225,000 per year beginning in 2015.

The coordinator added that paying the debt early “may also alleviate” some of the need for property tax increases as the city’s contribution to the employee pension fund continues to rise.

(Email: jmanna@ncnewsonline.com)

1
Text Only | Photo Reprints
TOP STORIES
  • 12.jpg Photo Gallery, Story: Night light

    The balloons may have been on the ground but spirits were soaring.

     

    July 25, 2014 1 Photo 1 Slideshow

  • StateFair.jpg 'State Fair' coming to Playhouse

    The fair is coming to town. No, not the Lawrence County Fair, although that is right around the corner. This is the Iowa State Fair, and it will be live on the stage of the New Castle Playhouse for three weeks, starting Friday night.

    July 24, 2014 1 Photo

  • accountant.jpg DeLorenzo’s status with authority unchanged

    Deno DeLorenzo’s status as a contract employee with the New Castle Sanitation Authority remains unchanged. Authority board members met with DeLorenzo last week regarding an investigation by the Lawrence County district attorney’s office involving Shenango Township funds.

    July 23, 2014 1 Photo

  • Shooting.jpg Detroit area man dies in Ellwood City gunfire

    A triple shooting in an Ellwood City street has claimed the life of a Detroit area man. Gunfire erupted in the middle of Loop Street outside the Walnut Ridge housing project around 10:20 p.m. Sunday, according to state police.

    July 22, 2014 1 Photo

  • Baptism1.jpg Dipped downtown

    John the Baptist identified himself as “the voice of one crying in the wilderness, ‘Make straight the way of the Lord.’ ” On Saturday, local evangelist Randy Crum once again took a cue from the son of Elizabeth and Zechariah, eschewing the locusts and honey that John was known to munch on but heading out into the wilds to baptize believers and challenge them to share their faith with their community.

    July 21, 2014 3 Photos

  • lamancusa.jpg Tanner, district attorney: No comment

    The Lawrence County District Attorney is keeping mum about a probe into finances in Shenango Township. “We don’t talk about ongoing investigations,” Lamancusa said Friday.

    July 19, 2014 1 Photo 5 Stories

  • Shenango1.jpg Shenango Township: Supervisors fire Tanner, release DeLorenzo

    The Shenango supervisors fired township secretary/treasurer Brian Tanner and terminated auditor and consultant Deno DeLorenzo last night.

    July 18, 2014 3 Photos 4 Stories

  • gavel.jpg Shenango to take action on Tanner, DeLorenzo

    Shenango’s supervisors will act Thursday night on the employment contracts of two men being investigated for possible theft of township funds.

    July 17, 2014 1 Photo 4 Stories

  • money.jpg Shenango computers, financial papers seized

    Investigators have seized computers and a host of financial paperwork from the Shenango Township Municipal Building.

    July 16, 2014 1 Photo 3 Stories

  • money.jpg Second warrant issued in Shenango Township finances probe

    The home office of Shenango Township’s secretary/treasurer is the subject of a search warrant. A warrant was approved allowing investigators from the Lawrence County district attorney’s office to search Brian Tanner’s home office at 658 Melody Lane Extension in Shenango and seize all computers and computer records.

    July 15, 2014 1 Photo 2 Stories

House Ads
Poll

"State Fair" opens at the New Castle Playhouse tonight. Will you be checking out the show?

Definitely! I've already got my tickets.
Maybe. I'm not sure.
Nah, it's not for me.
     View Results