The City of Osawatomie has earned an A+ Bond rating from Standard & Poor’s, which helped the city save thousands of dollars on Bonds that were issued, to help pay for street repairs. The 10-year Street Improvement Bonds totaled $6,175,000, which is $90,000 less than what was originally authorized. Deputy City Manager, Bret Glendening, says the A+ Rating is two steps above the rating the city received from Moody’s the last time it had a Bond Issue rated. The Bond Issuance attracted nine bidders. County Club Bank of Leawood was the successful bidder, with a net interest rate of 1.8122%.
Glendening said the $90,000 savings can be attributed to the premium County Club Bank was willing to pay in order to purchase the Bonds. Part of the Bond Issue was a refinancing of debt associated with the City’s last wastewater treatment project, which saved the city about $30,000, Glendening says. He noted other savings associated with the Bonds, saying “the interest and the annual debt service on these Bonds is $20,000 less per year. All of this translates into being able to do more work on our streets”.
