City of McPherson approves sale, refinancing of 2005 bonds

By Chris Swick
June 30, 2015

McPherson City Commissioners authorized the refinancing of general obligation bonds issued in 2005 Monday afternoon that will save the city over 174 thousand dollars.

The sale of the bonds was initially to be held late last week, but was delayed until Monday morning. The City's Financial Advisor, Roger Edgar of George K. Baum and Company in Kansas City, Missouri, said that was beneficial, as they were able to get a better rate due to the bond market being stronger...

“We lowed the yield on the bonds all up and down and down the maturity schedule by .05 percent,” Edgar said. “Stifel went out and offered the bonds at those levels.”

Edgar said Stifel Nicolaus and Company, the underwriter on the bond refinancing, was able to save the City id="mce_marker"74,506, which will come to the City in equal amounts each year for the next 10 years...

“There were 10 years left on the series 2005 bonds,” Edgar said. “We didn't change the amortization on the 2005 issue. We just set up the new bonds so that they were just a mirror of the old bonds. So those savings will be between id="mce_marker"5,000 and id="mce_marker"9,000 a year interest each year.”

This particular refinancing had two components. The first was the sales tax issued to help with the Avenue A project that went out to 2020 and then a refinancing that went out to 2025.