(KLZA)-- The Falls City Council has cleared the way for Community Medical Center to reduce the amount of interest to be paid on bonds.
On Monday evening, city bond counsel Mike Rogers, an attorney with Gilmore and Bell in Omaha, explained the process to Council members. Tax rules allow an entity such as the hospital to borrow on a tax-exempt basis, only if a governmental entity is involved and serves as the issuer of the bonds.
State statutes make it clear, the transaction will not be a liability of the City.
In 2015 the City issued $6,055,000 in Revenue Refunding Bonds for CMC. The new amount will be less than $5.7-million.
The City would still have the ability to issue more than $4.3-million in bank qualified tax-exempt bonds on other projects if needed. Rogers said this would greatly benefit the hospital in lowering their interest rate and lowering the principal payments.
© Many Signals Communications
MOST VIEWED STORIES
Hiawatha man charged after escape from police custody
Meriden teen injured in Jeff co wreck
Two arrested in rural Horton drug bust
USD 415 board approves resignations, new hires
USD 115 board fails to fill vacancy after 3 votes
Fake sports rings seized enroute to Atchison
Early Saturday house fire battled in Atchison
Topeka woman arrested in Jackson Co on drug charges
Hearing held on USD 115 land transfer petition
Failure to stop, Georgia warrants, hold Atchison man
Lansing man arrested in overdose death
4th attorney appointed for TX man charged in fatal Jackson Co wreck
8-year-old injured in mid-week Atchison wreck
New Mayor appointed for Lancaster
LV man sentenced for teen sexual attack
K-9 bridge replacement underway in Nemaha County
LATEST STORIES
Motorcyclist injured in Winthrop, MO crash
Bird flu found in two KS dairy herds
Brown Co certifies election results
Winter help deadlines fast approaching
8-year-old injured in mid-week Atchison wreck
Easter celebrations set for Atchison
Nemaha Co Commission approves grant applications
4th attorney appointed for TX man charged in fatal Jackson Co wreck
RELATED STORIES
CMC in Falls City to stop delivering babies
Community Health Assessment results released
Falls City Hospital financially solid
CMC Expansion and Remodeling Project Update
Fundraising Effort Underway For Falls City Hospital Project
$8-Million Expansion of Falls City Hospital Announced
Falls City Hospital Refinancing $16-Million in Bonds