The Jefferson city council at its June 9 regular meeting approved the sale of $2,450,000 in general obligation urban renewal bonds to fund the water and sanitary improvements required for Wild Rose Jefferson/Cobblestone Inn.
The winning bidder was UMB Bank NA of Kansas City, MO, and Home State Bank of Jefferson. The true interest rate is 3.08 percent on the 20-year issue. Net interest cost will be $923,093. The Moody rating in the bonds is A2, which is Moody’s third best rating. A2 obligations are judged to be upper-medium grade subject to low credit risk.
There were three other bidders on the sale.
The bonds will be repaid through tax increment financing – the increased property tax netted from the improvements to the property will cover the repayment of the bonds.
The city council also approved the sale of $300,000 in general obligation reimbursement bonds to the same winning bidder. The true interest rate on that sale is 2.256 percent, a net interest cost of $57,616.67. Those bonds are also rated A2. There was one other bidder on that sale.
The bonds will allow the city to replenish the general fund after the purchase of the Jefferson Community Golf Course. Payments are due in 2023 and 2024.
