The City of Osawatomie has issued $400,000 in General Obligation temporary notes at 2.56% interest to pay for emergency repairs to the city’s main sewer line. The notes were sold to First Option Bank. The notes, which will go into effect December 31 and mature on January 1, 2021, will cover the cost of repairing the sewer line after it ruptured under the Marais des Cygnes River in mid-October. The trouble spot was isolated quickly and the repairs have already been made by a company contracted to do the work, city officials say. The break did not affect the city’s drinking water supply, and a temporary sewer line was put in place above the river until the repairs could be made in early November.
The temporary notes will cover the cost of the repairs made by Cutting Edge Trucking, Inc. of Louisburg which submitted a $297,108 invoice for the repairs, as well as any other costs associated with the project.
Financial Adviser David Arteberry recommended the city issue temporary notes to cover the repairs, rather than spending down the city’s cash reserves. He says once the temporary notes have matured, the city could pay them off with available funds or issue long-term General Obligation Bonds to cover the expense.
