The unanimous approval of a
"We had been talking with
The loans themselves will be broken up into two notes, according to Smith. They will be a taxable and non-taxable note, with
"There are components of what we're financing that were not eligible for tax exempt financing," said Smith. "We had to break it up into two notes for that purpose."
Taking on the responsibility of hosting the loans will be
"There are certain types of banks that have appetites for these types of notes . . We sent them information on the city, the hospital and the sales tax to peak their interest," said Smith. "Rural hospitals are having a lot of issues and most of the players we typically go to declined. But the good news is
One of the first things is reimbursing the city for their investment in keeping the doors open. For that purpose
Some of the major items include
The half cent hospital sales tax will essentially help pay these loans off. Another half cent was pledged by the city through the general government funds. This was to encourage the loan application process and offer a security cushion.
Smith placed a lot of confidence in the half cent tax and its ability to help pay off the loans. He noted how if past numbers hold where they are now, the half-penny should generate
That will start this
Along with the city's pledged support, the annual payments of around
"Very few have shown the continued growth the
The first payment is due
Smith noted that they could continue paying a higher annual payment as long as they notified
"The accounts will be immediately be set up to begin drawing funds out of them," said Smith.
(c)2014 the Pauls Valley Daily Democrat (Pauls Valley, Okla.)
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