City Prepares To Pay Off Library And Pool Bond 7 Years Early
Eureka City Councilmembers moved forward with paying off bonds for the city pool and library at their meeting last Monday. The bonds, issued in 2005 with a 20-year term, totaled $2,600,000 and will be paid in full this December. The bonds were paid with a 1-cent sales tax that was approved by Eureka voters in 2005. Councilmembers approved ordinance 4242 at last week’s meeting, which will notify the Kansas Secretary of Revenue to terminate the 1-cent sales tax. This will drop the city’s sales tax from 9.5% to 8.5%. However, residents will vote on November 6 whether they wish to approve a 1/2-cent sales tax for the hospital, which could bring the sales tax up to 9% in January. City administrator Ian Martell mentioned that there will be some additional funds from the one-cent tax that will go directly towards pool and library improvements. Councilmembers were pleased with the early payoff, noting the savings taxpayers will see as a result of avoiding seven more years of interest.
The council also voted to approve a new temporary bond for the River Street Project, totaling $278,000. The bond will pay off the 2017 temporary note of $142,000, and allow the city to continue paying for preliminary engineering and design costs. In 2019, the city plans to take out the permanent bond to pay for the entire River Street Project, approximately $4.1 million. KDOT will assist with $1 million in grant funding and construction should begin in 2020. The 2018 temporary bonds will be issued by Home Bank and Trust at an interest rate of 4%. Home Bank also issued the 2017 bonds. In order to accept the 2018 temporary bond, councilmembers approved resolution 18-16.
To read more please log in or subscribe to the digital edition https://etypeservices.com/Eureka%20HeraldID679/