Commission considers refinancing bonds
Staff reporter
Marion County Commission met in regular session Monday and heard presentations from two investment bankers regarding the refinancing of a road overlay bond issued in 2000.
David Arteberry of George K. Baum Company submitted a proposal for reissuing two bonds. The road overlay bond, issued in 2000 at an interest rate of 4.76 percent, matures in 2006 and has an outstanding balance of $660,000.
Arteberry recommended that the commission consider refinancing an additional bond that was used for courthouse improvements. Issued in 1997 and maturing in 2007, the bond has an outstanding balance of $100,000 and was financed at 4.85 percent.
By refinancing at the current interest rate of 1.615 percent, the net savings would be $23,700 for the road overlay bond only. If both bonds were refinanced, a total net savings for the two bonds would be $29,685. The proposed fee would be .70 percent of the total amount of the bonds or $4,767. Additional fees (bond counsel, publication notices, etc.) could total $7,600.
The combined new bond issue would mature in 2006.
Chairman Howard Collett asked if the County's current debt position would affect the ability to sell the new bonds. Arteberry said it would not be affected.
Charley Young of Public Finance Group presented information regarding the road overlay bond issue.
Young stated that the county would save $24,000 for the road overlay bond. Fees will include cost of issuance and commissions totaling $13,500. He asked for the opportunity to bid the courthouse improvement bond. The commission agreed to have Young on the agenda for Monday's meeting.
In other business: Marion County Clerk Carol Maggard reported that the county had received its worker's compensation ratings from the county's insurance carrier, Kansas Workers Risk Cooperative for Counties (KWORCC).
The experience rating of .97 is based on the 2003 "experience" (claims) which is a decline from .99 in 2002. Maggard stated that anything below a 1.00 is considered satisfactory.
David Brazil, director of planning, zoning, sanitation, and the transfer station, presented monthly line item budget information to the commission. Overall budget is below the "available budget to date."
Brazil reported average activities for sanitation during September.
Collett asked if the trash flow for October, November, and December would affect the allotted budget. Brazil said that it will all "balance out" at the end of the year, even with the fall cleanup planned by Marion and Hillsboro.
"This year has been difficult to predict expenses," Brazil said. "Next year will be easier."
A new transfer station sign and improvements to the transfer station bathrooms are among the planned expenses yet for this year.
Collett asked if the skid steer, a small loader used at the transfer station to push trash off the trash floor for shipping, will make it to the end of the year. Brazil said they have been maintaining it and "hopefully it will." Brazil has $24,000 budgeted for a new skid steer for 2004.
Commissioners voted to accept Susan Cooper's resignation as the Marion County representative to the South Central Kansas Economic Development District (SCKEDD) Board of Directors. The Marion County Economic Development Council will make a recommendation to the commission regarding Cooper's replacement.
The commission recessed at 10:45 to view Ulysses Road in Antelope and view road projects. Commission reconvened at 12:35 followed by adjournment.
The next commission meeting will be Monday at 9 a.m.
