City to refund 2013 water park bonds to save estimated $145K

By Dave Marner, Managing Editor
Posted 12/23/20

Owensville aldermen on Monday voted to make Mission, Kan., based McLiney and Company the city’s municipal advisor tasked with refinancing bonds issued for construction of Winter Water …

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City to refund 2013 water park bonds to save estimated $145K

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Owensville aldermen on Monday voted to make Mission, Kan., based McLiney and Company the city’s municipal advisor tasked with refinancing bonds issued for construction of Winter Water Park.

Joey McLiney, son of Edward D. McLiney, attended a finance committee meeting held prior to the regular board meeting on Monday. McLiney and Company’s proposal will save an estimated $152,000 with a “present value savings” of $145,000. The savings figure is based on an “A” Standard and Poor rating and a 3-percent cost of issuance.

The new repayment schedule is estimated to save the city $15,000 annually. The McLiney firm had requested it be hired as the city’s municipal advisor and could maximize the savings by running a public sale of the new bonds to capture favorably low interest rates, quoted at 1.62 percent compared to the average 3.2 percent rate currently.

In a letter to the city, Edward McLiney said there is a “huge demand for quality towns with quality issues such as yours.” Banks are buying general obligation bonds and “giving extremely low rates to get them,” he added.  The proposed closing date is expected by Jan. 15, 2021. Voter-approved general obligation bonds were originally issued in 2013 for construction of the water park. Parks Commission members also approved the proposal.

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