NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — The Hutchinson City Council approved a resolution to make an early additional payment on the Sports Arena bonds at their meeting on Tuesday.
"Back in 2015 and 2016, we issued $27,430,000 of bonds for the Sports Arena improvements," said Finance Director Angela Richard. "Also, in July of 2015, a special sales tax was enacted .35% to pay the bonds for those improvements. Today, we have excess money in our Sports Arena debt fund. We have $6.6 million. We are asking council's approval to spend an extra $3 million on principal payments in October. We have to do this resolution and approve it in order to make that extra payment. Then we will notify the holders of the bonds that we will be calling them early and we will notify the state."
October is a normal payment time for the bonds, but the authorization was needed to pay an amount above the normal payment schedule.
"This is just for the part that we plan to pay off early in 2023," Richard said. "We anticipate by July to September of 2024 we will be able to pay off all of the bonds and then we will be allowed to let the sales tax expire."
The sales tax would have expired in 2025 anyway, but there is a significant interest savings in making the early payment.
"The extra $3 million that we're going to pay would save an extra $125,000 approximately," Richard said.
The motion to make the extra payment passed unanimously.
CLICK HERE to download the Hutch Post mobile app.
CLICK HERE to sign up for the daily Hutch Post email news update.