HUMBOLDT — Eager to take advantage of rock-bottom interest rates, Humboldt council members took the first steps at their meeting Monday evening to refinance an estimated $1.5 million in bonds.
The move will save the city about $339,000 in payments and shorten the schedule by six years.
The city is using Greg Vahrenberg of Raymond James in Kansas City, Mo., as the underwriter for the sale of the bonds and Tyler Ellsworth of Kutak Rock, also of Kansas City, Mo., to advise them on legal matters regarding the process.
“Your timing is really perfect,” said Vahrenberg, who spoke via an online platform. “Interest rates are back down to the all-time record low of August.”
Humboldt is currently paying an average 3.51% interest rates on its outstanding bonds, with the final payment due in 2051.
Refinancing can get the rate down to 2.43% with final payment due in 2045.
“That’s a 15% savings,” Vahrenberg said, adding, “It’s not very often we get better than a 10% savings.”
The bulk of the payments are for three general obligation bonds approved in 2011 that went for the renovation to city hall and for water projects.
A bond for $450,000 was issued in 2008 to make renovations to Humboldt’s municipal pool.
Monday’s action allows Vahrenberg to establish a bond rating through Standard & Poors in the next week.
By late January, the bonds will be ready for investors to peruse, Vahrenberg said.
A RESOLUTION recognizing the city’s response to the “uncontrolled spread of COVID-19” was adopted.
The measure urges residents to guard against the virus by staying home; limiting contact with those not in their “COVID bubble;” practice “sound decision-making” in gathering with friends and family during the holidays; report to others any possible exposure to COVID, and to fully comply with quarantine guidelines if they contract the virus.
The resolution “shows we support and care for our community,” said Nobby Davis, mayor.
In other news:
Ashleigh Dooley, council member, will be prematurely vacating her seat in January due to her moving out of town. Dooley’s term expires at the conclusion of 2021. Candidates must live north of Bridge Street. Those interested should contact Cole Herder, city administrator, at 620-473-3232.
Cereal malt beverage licenses were approved for Estrellita Mexican Restaurant, two Pete’s convenience stores (Pete’s 48 and Pete’s 31), TJ’s BBQ and Dollar General.
