By Myrna Trauntvein
Times-News Correspondent
Paying down debt is a smart thing to do whether it is done by a city or by an individual.
Heather Taylor, Levan Town Clerk, suggested that the council use money available to do just that—pay down debt.
"We currently have a balance on the water bond of $152,000," said Taylor. "We have $80, 642.28 in the water fund."
She said that, of that, $17, 600 in capital expenses and been budgeted.
"We owe $9,000 on the principal of the water bond and $5,000 plus in interest due January 1, 2012," Taylor said.
"I would like to pay an additional $8,600 from the water fund toward this balance," she said.
Also, said Taylor, from 2002 to 2007, the water fund paid a total of $134,400 in shortages to the electric fund.
"I would like to pay back the water fund from the electric fund, $34,400, of that amount and put it toward the bond," said Taylor.
The electric fund currently has $168,208.22.
"This would pay our water bond down to $100,000 and save use three years and almost $3,000 in interest," she said. "Our current interest we are paying on the water bond is 3.290 percent and we are gaining 0.6346 on our PTIFs."
Taking that action, she said, would bring the city water fund balance down to about $63,000 and the electric fund balance to down to approximately $133,000.
The amount budgeted in the electric fund for capital expenses for the year is $38,250 and subtracting the moneys would leave the budget somewhere around $100,000 by the end of the fiscal year.
"Also, I would like to pay and additional $10,000 to $15,000 on the garbage truck," said Taylor. "Its current balance is $42,000 and we pay 3.625 percent interest."
The garbage fund currently has $26,759.35 and last year the town profited over $10,000.
"I think that is a good idea," said Brady Taylor, council member.
"I agree but I think we should put $15,000 on the garbage truck," said Brent Taylor, council member. We are paying out half of the additional money we came up with last year."
That means that the council agreed to pay $57,000 for the water bond and $15,000 on the garbage truck.
