City Debt Refinancing to Save $728,000
City Commissioners unanimously approved the sale of General Obligation Bonds and Temporary Notes to refinance existing debt during Monday’s regular meeting, saving the City more than $728,000.
Eight banks bid on the GO Bonds, with the low bid from Country Club Bank in Leawood, KS at an aggregate rate of 1.352%. The average rate of the debt being refinanced was 2.771%. The bonds will refinance the 2014 bonds originally issued for the Atchison Event Center remodel, an aerial ladder fire truck and street improvements. Other debt refinanced with GO Bonds include three KDHE loans to fund water and wastewater infrastructure. The refinancing does not extend the length of any of the debts.
The bonds will take advantage of favorable interest rates to save the city $728,358 in interest costs over the life of the debt, while the temporary note is a refinancing of the note issued in December for the infrastructure build out in the Brookdale Estates expansion.
The temporary notes are a one-year debt that will be repaid by future owners of the properties at Brookdale Estates. The interest rate for the temporary notes was 0.356%.
This is the second time in seven months that the City has used historically low interest rates to save money through refinancing of debt. Combined with a similar GO Bond issuance in December, the City will save more than $1.383 million in interest.
In other action Monday, commissioners chose not to approve the 2022 Atchison County Joint Communications and Solid Waste budgets, citing concern for existing fund balances, lack of transparency in sales tax fund accounting and proposed spending of sales tax funds on expenses not related to Joint Communications or Solid Waste.
Commissioners also approved a resolution accepting nearly $1.6 million in ARPA funds over the next two years. The money will need to be spent by 2024.
Following the meeting commissioners adjourned to a budget workshop to discuss capital improvement and equipment replacement plans for 2022-2026.
The next regular city commission meeting is scheduled for 4:30 p.m. on Tuesday, July 6 in the commission room. The meeting will not be on the customary first Monday of the month because July 5 is the observance day for the City for the Fourth of July holiday.