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Hiawatha Hospital Refinancing Outstanding Debt

By Greg Bebermeyer

09/17/2014

(KNZA)--The Hiawatha City Commission has approved an ordinance authorizing the issuance of more than $6.4 million in refunding revenue bonds on behalf of the Hiawatha Community Hospital.

The Commission took the action Monday evening following a hearing drawing no public comment.

The hospital is refinancing it’s current bond issue and some of its loans with local banks, a move expected to save about $600,000 in interest costs. The original bonds were issued in 2002 to complete the hospital surgical addition, and refinanced in 2007.

Mike Schmitt, with the city attorney’s office, said the city would not be liable if there were a default.

In other business, the Commission adopted a resolution authorizing an application for a $500,000 Community Development Block grant for Phases II and III of the sewer rehabilitation project, and also authorized the mayor to sign the necessary documents.

The Commission also selected a proposal from Lawrence-based Governmental Assistance Services to serve as grant administrator, if the grant is awarded.

The Commission voted earlier this month to combined the next two phases of the sewer project, with an estimated total cost of nearly $2.8 million.

The city also plans to seek a loan/grant through USDA Rural Development to help fund the project.

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