During a special meeting of the Concordia Board of Aldermen on Tuesday, May 26, aldermen discussed some issues about water and sewer bonds.
According to unofficial minutes from the meeting, discussion with Joey McLiney for potential refinancing of two water/sewer bonds and the potential savings available from such refinancing. Missouri laws allow municipal revenue bonds to over issue for a bond reserve, making the bond more secure. McLiney pointed out reasons to refinance- capturing bond reserves by refinancing, present value savings recommended (three percent), but the city is not there yet. The annual payment would be less than what it is now, and the city can use its CD reserves instead of needing to keep this in reserves until bonds are paid off. Interest rates being what they are, it is time sensitive to put the bonds out for bids and get the best interest rates and capture the reserves.
Aldermen voted to approve McLiney to proceed with refinancing the bonds.
City Administrator Dale Klussman spoke to Larkin about the quote for the consolidated public water district wholesale service hydraulic study at $5,500. This would help determine the water flow the city currently has, and if a water tower is needed if the city was to sell more water. The last time this was done was in 2015 at $2,100. Doing a study of its water system for possible updates needed would cost $6,000. This would be needed regardless of an increase in sales, and the city could apply for a grant this fall when one is available. A study for conversion to chloramines as residual disinfectant would cost $7,000, also from Larkin. The city will have to get a building permit if it goes to converting to chloramines from the department of natural resources. This would be the reason for the $7,000 bid, as it will need an engineer to file everything with DNR for the building permit.
No action was taken.