Linn Valley council approves temporary notes to fund sewer lagoon expansion

The Linn Valley City Council approved a resolution authorizing the issuance and sale of general obligation renewal temporary notes, Series 2026, to help fund a sewer lagoon expansion and related water and sewer work. Robert moved the resolution and the chair seconded; the motion passed by voice vote with members responding "Aye," and the transcript does not record an exact tally.

Joey, who presented the bond sale details during the meeting, said the bonds were well received and showed a nominal interest rate of 4 percent. "But since they paid you a premium of $37,260, your actual interest rate for the bonds is 3.35%," Joey said. He told the council the par amount sold was $5,520,000 and noted a capitalized interest deposit of $4,456,933.33 that will be held with the trustee bank, Security Bank of Kansas City.

Joey said the low construction bid for the project is $3,295,235 and that some miscellaneous project costs of $13,192.74 are included in the uses. He also noted $6,436,958 of bonds issued in June 2022 will be retired on 01/20/2026. "The initial deposit into the capitalized interest account, $4,456,933 and 33¢," Joey said, describing how proceeds will cover interest payments through the construction and early post-construction period.

The resolution was read by title as "a resolution authorizing and directing the issuance, sale and delivery of general obligation renewal temporary notes, Series 2026, City of Linn Valley, Kansas," and moved and seconded on the floor. The council adopted the resolution by voice vote. The council did not record a roll-call tally in the transcript; minutes or the clerk's certification should have the official vote count.