HUMBOLDT — Humboldt’s financial picture got a whole lot rosier Monday night when city council members approved the reissuing of about $1.5 million in bonds.
The action means a savings of about $371,000 on the $1.5 million debt it owes, and cuts six years off the payment schedule, with the last payment due in 2045.
The interest rate on the bonds will go from 3.51% to 2.2%. For the city, that means an 18.5% savings on its overall payment.
The bulk of the bonds are three series of general obligation bonds approved in 2011 to renovate city hall and make improvements to the city’s water lines. A revenue bond for $450,000 was issued in 2008 to make renovations to the Humboldt pool.
To reissue the bonds, Humboldt applied to be officially rated by Standard and Poor’s.
In its report, S&P said Humboldt has a “stable outlook,” and gave it an A rating. The best rating possible is AAA, with several tiers of strength with each letter. Bottom of the barrel is a D. An A rating means Humboldt is a strong bet to pay off its debt on schedule and thus a safe investment.
Humboldt’s credit rating and favorable interest rates guarantee the bonds will be scooped up, projected Tyler Ellsworth, legal counsel for selling the bonds. Ellsworth is with Kutak Rock of Kansas City, Mo.
Raymond James of Kansas City, Mo., is the underwriter in charge of managing the sale of the bonds.
Ellsworth said the rating reflects favorably on the city’s management.
Somewhat related, council members extended City Administrator Cole Herder’s contract for another two years.
“We recognize the hard work you put in. More than that, we recognize the heart you put in,” said Mayor Nobby Davis.
Herder took on the role in June 2014.
“It was a steep learning curve those first few months stretching into a couple of years, which I really enjoyed,” he said. “I didn’t know it was possible to learn so much on a daily basis for an extended time.”
Herder said an “interested party” has approached the city to purchase the Milson property “as is” at 415-417 Bridge St., with the promise of cleaning it up and building a new home on the site. The city had planned to assume ownership and perhaps have Humboldt High’s building trade students construct a home there, though nothing had been finalized.
Herder said they are drawing up an agreement whereby the purchaser must agree to a timeline for cleanup and follow-through, or else “the property will return to the city,” he said.
For those in need of help to pay their utility bills, the state’s Low Income Energy Assistance Program has begun. Low income is considered $1,383 per month for a single person household and increases of $486 per additional individual. Thrive Allen County is helping sign up applicants. For more information call Thrive at 620-365-8128 or Humboldt City Hall at 620-473-3232.
Sarah Hart was appointed to the council to replace outgoing Ashleigh Dooley, who moved out of the city limits.
