Butler City Council on Thursday approved payments on the principal and interest on the bonds floated in 2015 to fund construction of the garage in the Centre City project downtown.

In a related matter, council adopted a resolution extending the maturity date of the $2 million bank loan the city guaranteed for the Butler Redevelopment Authority, which used the money to help pay for construction of the Marriott Springhill Suites in the Centre City project.

Council agreed to transfer $289,216 from the parking fund to the general fund to pay $190,000 toward the principal of the bonds and $108,216 toward the interest.

The approved payments include $190,000 toward the principal of the taxable series A-2015 general obligation bonds and $5,572 toward the interest, and $102,643 toward the interest on the series B-2015 bonds.

The resolution on the $2 million loan from PNC Bank extended the maturity date to Dec. 6.

PNC offered to extend the maturity date and the extension is the best way for the city to address downgraded bond rating, solicitor James Coulter explained at Tuesday’s forum meeting.

S&P global lowered the bond rating from BBB, which signifies medium grade bonds, to BB+, signifying noninvestment grade, or junk, bonds in October marking the second bond downgrade this year. Previously, S&P lowered the rating from A, signifying good to medium investment grade bonds, to BBB.

When the hotel is completed in November, the city is due to receive a $2 million state grant that will be used to pay off the bank loan.

In unrelated business, council awarded a garbage and recyclable material collection contract to Waste Management for 2018 through 2020.

Residential monthly fees will be $19.50 in 2018, $20.09 in 2019 and $20.69 in 2020. Senior citizen fees will be $17.56, $18.09 and $18.63, respectively.

Vogel Disposal, the current contractor, submitted a bid with higher rates.

During the public comment period, several residents of the 300 block of Oak Street, a brick-covered road, urged council to pave the street.

They said a manhole protrudes so high that it damages suspensions and mufflers on cars, large potholes have opened up adjacent to the sidewalk and the uneven road surfaces prevents plows from removing all of the snow from the street.

Councilman Kenny Bonus said he walked and drove on the street, and agreed with the residents’ assessment of its condition. However, he said he doesn’t believe the city can afford to pave it this year, but fixing the street will be a priority.

Mayor Tom Donaldson said the city might be able to get the Butler Area Sewer Authority to look at the manhole.

John A. Pro of the Butler Old Stone House Region of the Antique Automobile Club of America, and Bob Brandon, a Bantam vehicle collector and restorer, also addressed council.

They asked council to take possession of one of the two Bantam Jeeps the Butler County Historical Society has in its possession. The men allege that the society violated a contract by not displaying either of the vehicles during this year’s Bantam Jeep Heritage Festival.