(STURGIS) - The Sturgis City Commission has agreed to pay on some of the Sturgis Hospital bonds.
During last weeks' meeting City Controller Sadie Griffin shared that the City Building Authority holds the general obligation bonds on the Hospital. The total amount is $5,445,000 in outstanding principal.
Griffin next proposes what should be done.
Griffin says there was an option discussed during the budget process and was also advised by the City's financial advisors and bond council. The recommendation is to utilize $3 million of the money the City has to call a portion of some of the outstanding existing bonds. (LISTEN ABOVE)
By making this payment, Griffin says it would bring the principal amount on the bonds down to $2,455,000.
Sturgis City Clerk Ken Rhodes says the $3 million was given to the City in consideration of relieving the Hospital and Asker Corporation from any obligation on the bonds. Rhodes says the City took full responsibility, saying Sturgis would always back the bond and would always be obligated to pay those.
The Commission unanimously agreed to pass the proposal.