(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
Walnut Township recall coming; Friday mtg erupts in arrest
Former Kickapoo Tribal chairman arrested
Sabetha woman arrested in business burglary
Effingham teen facing child sex crimes charges
Severe storms move through NE KS
Winchester native named as Amberwell CEO
Holton property search concludes with arrest
Rural Horton man charged in alleged beating
Severe storms reported Tuesday in NE KS
Document forgery alleged in ATCO's Walnut Township
Atchison man nabbed for neighbor's 4 wheeler theft
Meriden man bound over on rape charge
KS prepares for severe weekend weather
Former AG Schmidt running for KS' 2nd Congressional District
Richardson County Deputies busy during special enforcement
Two Brown Co officers honored for their bravery
Beef Barn replacement planned in Jefferson Co
Commission approves agreement for budget help
LATEST STORIES
Winning lottery ticket sold in Falls City about to expire
Trail rides ending at Indian Cave State Park
Atchison's BC names Educator of the Year
Document forgery alleged in ATCO's Walnut Township
Two Brown Co officers honored for their bravery
Tornado damage surveyed in NE KS
Road, railway repairs, underway in Atchison this week
KS replacement plates see long wait times
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