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| News - Linn County News | |||
| Written by Charlene Sims | |||
| Wednesday, 28 October 2009 08:00 | |||
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LA CYGNE — Paperwork was finalized for the La Cygne Swimming Pool during the La Cygne City Council meeting on Oct. 21. Kevin Cowen, bond attorney from Gilmore and Bell, explained the ordinance to the council before they signed it. The ordinance authorizes the city of La Cygne to enter into a base lease with the La Cygne Public Building Commission (PBC). The city leases the property to the PBC, and in turn the city will lease from the PBC the swimming pool facility located on the property. “This gives the control back to the city so everything will feel the same as it has been in the past,” Cowen told the council. “The city will make a lease payment to the PBC, and they will use it for the bond payment.” The PBC will be the entity that issues the revenue bonds for financing the project. The funding for the city’s lease payment will come from the new 1 percent sales tax. Steven Shogren from George K. Baum, the underwriter for the structure of the bond issue, told the council that the PBC had received an “A-minus” rating from Standard & Poor. This will allow the city to issue revenue bonds in the amount of $1.62 million at the average interest rate of 4.83 percent. “Eighty-eight percent of the bonds were marketed yesterday but cannot be locked in until the council signs the ordinance,” Shogren explained. That interest rate sets annual payment at about $109,700. The bonds can be paid off anytime after 2019.
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