Mission received good news on its finances this week as it sold new bond issues to pay for street light purchases and the new outdoor aquatic center.
Both the interest rates on the bond bids and the financial rating given to the city’s debt were welcome news. The city recently had Standard and Poor’s rate the debt issues and received an AA- rating. “I was thrilled with the result on your behalf,” Bruce Kimmel, the city’s independent financial advisor, told the city council.
He said the rating agency noted the stable financial management in the city and rated the financial practices and policies as ‘strong.’ Kimmel said only a small percentage of cities get the strong rating. Laura Smith is the city’s finance director. She said the agencies assign a rating to specific debt issues, but it is a reflection of the city’s overall financial condition. The debt rating also applies to debt issues for the coming Gateway project, Kimmel said.
The bonds to purchase street lights were sold for 2.5 percent true interest rate and the pool bonds were sold for 2.29 percent. Both issues had premiums in the bids which allowed the total amount of the bonds to be reduced to $680,000 for the street lights and $4.51 million for the pool.
The street light bonds will be paid by savings from no longer renting the lights from KCP&L and the pool bonds will be paid with a new 10-year sales tax authorized by voters last year.