By COLE REIF
Great Bend Post
The City of Great Bend has been participating in a nationwide class action lawsuit against manufacturers of PFAS chemicals. Some of the claims have been settled and Great Bend’s share in that settlement totals a little over $1.3 million to be paid out over time. One payment has already been received, and another is expected in September.
The remaining amounts are currently set to be paid out in annual payments through June 2033. Great Bend has the opportunity to accelerate those payments and receive the total amount left this year, discounted to present value and minus a 3.5% transaction fee. Great Bend City Attorney Allen Glendenning said this would be accomplished by selling the income stream to an investment banking firm.
"It looks to me overall it probably will be a good deal," said Glendenning. "It gives you certainty on getting this amount of the money so there's no risk that they will stop making the payments along the way."
The amount to be paid to Great Bend after the September payment will be a little over $475,000. The final discount rate is being negotiated by the attorneys in the lawsuit. Using an estimated 9.7% rate, the accelerated payment would be approximately $430,000, minus attorney fees.
"I think attorney fees would be around another $115,000," said Glendenning. "We already paid some of the attorney fees out of the original payment. The rest of those might be paid out of the September payment."
Glendenning said the city could put the money on interest and collect back some, all or more than the city is giving up in the accelerated payment plan. The Great Bend City Council approved the authorization of the plan if the final number negotiated is deemed acceptable.