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La Cygne council authorizes $1.2M refunding for pool bonds, projects $293,260.76 in savings
Summary
At a Jan. 21, 2020 special meeting the La Cygne City Council voted 3–0 to approve a bond purchase agreement refinancing $1.2 million in revenue bonds for the La Cygne Swimming Pool; the city’s debt service comparison shows $293,260.76 in life‑of‑bond savings and annual payments of about $90,000–$97,255.
The La Cygne City Council voted 3–0 on Jan. 21, 2020 to authorize a bond purchase agreement to refund $1,200,000 in revenue bonds tied to the La Cygne Swimming Pool. Council members Thomas Capp, Danny Curtis and Keith Stoker voted in favor; two members were absent.
City Clerk Jodi Wade reviewed the background: the council had previously approved Resolution No. 407 on Oct. 16, 2019 to allow the offering of the Series 2019 revenue bonds for refinancing. On Jan. 21 the bonds were offered for refinancing; the preliminary Debt Service Comparison provided to the council showed a life‑of‑bond savings of $293,260.76 and estimated annual fiscal totals on the new series between $90,000 and $97,255.
Wade told the council the Public Building Commission had requested 15‑year bonds with a 7‑year early‑pay option. The minutes record that an earlier estimate of savings had been “around 3%” (minutes list the estimate as given by "Stiffel (George K. Baum)") but the results of the offering on Jan. 21 came in with roughly 15% savings overall. The council authorized Mayor Debra Wilson to sign the Bond Purchase Agreement following the presentation.
The minutes note an operational option tied to the structure: beginning in 2026 and in each year thereafter the Public Building Commission may prepay portions of the bonds or the entire issue under the early‑pay provision. The Public Building Commission and the La Cygne Community Park Board stated a goal of building a park reserve of approximately $200,000–$300,000 by the time the bonds and a related 1% sales tax sunset so the city could reallocate that sales tax for other uses.
The council took no further substantive action at the meeting on the bonds beyond authorizing the agreement and recording the savings estimate; the council then considered a related lease matter that the minutes say ties to the bond payments.
