Financial issues took center stage Monday at Warsaw City Council, as the council refinanced storm water bonds, considered a contract with KABS, discussed an unsafe building fund and passed a salary ordinance.

Storm water bonds issued in 1987 at more than 7 percent interest were refinanced Monday at 4.39 percent interest. The refinance will save the city more than $50,000 in interest over the life of the bonds, said Mayor Ernie Wiggins.

The original bond issue was for $570,000; the council used $365,000 from the cumulative capital development fund to reduce the amount due, then refinanced $245,000 at 4.39 percent interest.

"Basically, we're just refinancing the old bonds at a lower interest rate," Wiggins said.

The council also will consider a one-year contract with Kosciusko Area Bus Service, in which the city would pay KABS $2,000 for KABS' services.

The bus service is facing a financial crisis and has asked the city and county for financial help. A committee, chaired by city councilwoman Tammy Rockey, of KABS personnel and city and county officials has met twice in an attempt to find a solution to the financial problems.

At Monday's meeting councilman Gene Brumfield also agreed to serve on the KABS committee.

In other business the council:

• Discussed the city's unsafe building fund, which is in place but is not used uniformly. Warsaw building inspector Pam Kennedy said fines collected from residents would go into the fund, which would be used to pay for demolitions, emergency repairs and board-ups.

• Agreed to vacate the alley behind Rabb Water Systems Inc. on Argonne Road.

• Denied a request by Combined Community Services for a street light.

• Passed the 1998 salary ordinance, setting the mayor's salary at $44,800, the clerk-treasurer's salary at $38,500, and council members' salary at $4,200.

The council will meet at 5:30 p.m. tonight in the council chambers to discuss the final 1998 budget. [[In-content Ad]]