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Council approves $1.4M in loans, rates
by Lisa McDonald · News · June 30, 2016
The City Council voted unanimously June 22 to approve interest rates for the $1.4 million borrowed for two upcoming projects.
On Monday, the City Council then approved borrowing the money.
Speer Financial Inc. Vice President Larry Burger presented interest rate bids for two bonds to City Council members at a special meeting at city hall.
The bonds were bid separately since only one is tax exempt.
The tax-exempt bond for $1 million funds will be evenly divided between the city’s capital improvements plan and park improvements.
City Council members awarded UMB Bank, N.A. in Kansas City, Mo., the interest rate of 1.83 percent for the $1 million.
The CIP Year Two project focuses on street repairs. The park improvements will focus on Wapsi Creek, Lions Field and Pedersen Valley.
The taxable bond for $400,000 funds the relocation of Croell Redi-Mix, Inc. The city approved an interest rate of 2.27 percent, also from UMB Bank.
The cement plant will move to Rummells property purchased for $225,000. The rest of the bond will pay for additional expenses like closing costs, attorney fees and demolition of buildings once Redi-Mix moves away, Mayor Roger Laughlin said.
Councilperson Mary Beth Stevenson asked how UMB Bank was able to offer such low interest rates. Burger said interest rates have been low for the past 50 years and banks must offer low rates to compete.
The City Council members’ approval locked in the interest rates for the bonds.
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