By BECKY KISER
Hays Post

Good financial news was shared with Hays City Commissioners during their meeting Thursday night.

In the process of readying for Thursday’s sale of $1.01 million in general obligation bonds, the city learned it has earned a Standard & Poor’s AA rating on the bonds.

David Arteberry with George K. Baum and Associates, the city’s financial advisor, told commissioners city staff “did a great job in being prepared for the rating call–they really represented the city well. Additionally, I think you all need to be congratulated–as well as staff–for your financial responsibility.”

“An AA rating is an excellent rating, particularly for a city that’s not attached to a metro area. It’s really uncommon,” Arteberry explained.

Two bids for the bonds were received for the bonds–from UMB Bank and Commerce Bank. They are “two of the most active purchasers of bonds in this region and offer and bid at the most aggressive levels on a lot of bond issues,” according to Arteberry.

The lowest interest rate bid came from UMB Bank at 3.006673%, Arteberry reported.

Commissioners then unanimously voted to approve an ordinance and resolution to authorize issuance of the bonds at that interest rate.

The bonds will be paid from special assessment revenues received by the city as property owners within the Golden Belt 5th Addition and 46th Street 2nd Addition improvement districts pay their tax bills.

“These bonds are being sold to pay for a special benefit district in one of the residential subdivisions. Although they are general obligation bonds, the city is not going to repay them. The property owners will pay them,” Commissioner Henry Schwaller pointed out. “If they don’t, they will be attached to the properties.”

“The residents of Hays are not obligated to pay these taxes,” he emphasized.