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City approves issuance of general obligation bonds

Staff writer

Peabody City council approved a series of resolutions Nov. 2 to set in motion the issuance of general obligation bonds that will “pay back” money the city had to spend to clean up the mercury contamination at the former sewer plant.

Issuing the bonds will relieve some of the financial pressure the council has been under since the project was completed a year ago. The city borrowed money from itself to take care of the contamination and meet Kansas Department of Health and Environment regulations. The bond sale will allow the city to recoup the cost of the remediation and spread it over a 10-year pay back period.

Mark Detter, of DeWaay Financial Network, LLC, of Wichita, was present to explain his company’s procedure for handling the bonds for the city.

City Administrator Mac Manning told the council that Marion County banks and Newton area banks declined to purchase the bonds.

Resolutions to issue $200,000 in general obligation bonds, to enter into an underwriting agreement with DeWaay Financial, and authorizing the offering of the bonds for sale were approved by the council.

In other business:

  • Tina Partridge presented a request for the city to pass an ordinance prohibiting smoking in businesses and public areas of the community. No action was taken, but the council did agree to look into the process behind creating such an ordinance.
  • Nuisances at 907 and 909 N. Vine were abated.
  • Alley grading in the 300 block between Maple and Sycamore has corrected a flooding problem.
  • A plan was presented by Manning to increase chlorine residual in the water distribution system. The project will include flushing some parts of the system, draining the water tower, and possible temporary color, taste, and odor issues.
  • Economic Development Director and Main Street Director Shane Marler reported the sign on the highway is near completion with the installation of rear supports. He also announced the year-end evaluation for Main Street will be Nov. 18, progress is being made on the American Legion façade renovation, and he will receive training from the city’s new Web site provider.
  • Marler requested a 15-minute executive session with Manning and the council to discuss trade secrets. No action was taken on return to open session.
  • Tammy Whiteside presented her report on nuisance properties. Council members agreed to have her report only once a month through the winter.

Last modified Nov. 19, 2009

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