Title
RESOLUTION DECLARING IT NECESSARY TO BUILD OR REPAIR EXISTING BRIDGES IN THE COUNTY UNDER THE AUTHORITY OF K.S.A. 68-1103; PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS TO PAY THE COSTS THEREOF; AND PROVIDING FOR PUBLICATION OF THIS RESOLUTION AS REQUIRED BY LAW (2015 BRIDGE PROJECTS).
Presented by: Chris Chronis, Chief Financial Officer.
RECOMMENDED ACTION: Adopt the resolution.
Body
The Resolution declares an intent to make improvements to bridges and authorizes the issuance of general obligation bonds in an amount not to exceed $4,060,000 to pay the County's share of the costs thereof and associated bond issuance costs. The bridges to be improved are as follows:
CIP No. |
Project Description |
Cost Estimate |
B-458 |
Bridge on 183rd St. W. between 47th and 55th St. S. |
$600,000 |
B-459 |
Bridge on 87th St. S. between 295th and 311th St. W. |
500,000 |
B-460 |
Bridge on 45th St. N. between Broadway and Hydraulic |
600,000 |
B-462 |
Bike Pedestrian Bridge on Meridian over WVCFC Project |
1,500,0001 |
B-468 |
Bridge on 143rd St. E. between 63rd and 71st St. S. |
690,0002 |
B-469 |
Bridge on 93rd St. N. between Meridian and Seneca |
300,000 |
B-470 |
Bridge on 183rd St. W. between Central and 13th St. N. |
650,000 |
B-480 |
Bridge on 61st St. N. between 279th and 295th St. W. |
500,0003 |
B-482 |
Bridge on Hydraulic between 69th and 77th St. N. |
500,0004 |
|
Total |
$5,840,000 |
|
1 $562,000 in GO bonds; and $938,000 in available sales tax funds |
|
|
2 $138,000 in GO bonds; and $552,000 in available intergovernmental funds |
|
|
3 $400,000 in GO bonds; and $100,000 in available sales tax funds |
|
|
4 $250,000 in GO bonds; and $250,000 in available sales tax funds |
|
This resolution establishes the County's right to fund expenditures for certain projects with available cash and then reimburse the cash accounts with the proceeds of a subsequent bond issue. It also authorizes the sale of bonds to provide permanent financing for those projects. Thus, it provides a mechanism through which the projects can be expedited and the permanent financing of the projects can be delayed until an optimal future time.
These projects are included in the adopted Capital Improvement Program and are programmed to be funded with bond proceeds.
The bonds authorized in this resolution are scheduled to be sold in 2015. The resolution will permit reimbursement of expenditures incurred up to 18 months prior to the date of the bond sale or completion of the projects, whichever is first.
Alternatives:
This project could be funded with the portion of sales tax dedicated to road and bridge construction projects. However, as the anticipated amount of this funding has, except for a small reserve, been fully allocated to other road and bridge projects, doing so would require the elimination of funding for one or more of those projects.
The project to be funded with these bonds likewise could alternatively be funded with general county reserves. Doing so, however, would require an unplanned reduction of the level of reserves, which potentially could lead to future increases of property taxes as well as to a downgrade of the County's bond rating.
Financial Considerations:
Issuance of these bonds is contemplated in the County's financial plan and amended Capital Improvement Program. As general obligation debt, the bonds will be secured by a pledge of the County's full faith and credit, meaning bondholders will be able to compel the levy of property taxes if necessary to repay the debt.
The preliminary estimate of annual debt service required to repay these bonds is $272,000. The debt is expected to be repaid with an annual property tax levy, but the actual source of funds will be determined annually through the budget adoption process. A tax rate of approximately 0.06 mills would produce the amount of revenue needed to pay annual debt service. Because other outstanding debt of the County is being redeemed each year, there is no expectation that these bonds would necessitate an increase of the County's aggregate mill levy.
Legal Considerations:
K.S.A. 68-1103, as amended, authorizes the Board of County Commissioners to determine it necessary to construct or make improvements to any bridges in the County that meet the requirements of the Act, and to issue general obligation bonds of the County to pay the costs thereof. Bonds issued under this Act are not subject to any statutory limitation on the bonded indebtedness of the County.
Policy Considerations:
These bonds are not subject to the County's statutory debt ceiling.
The County's adopted Debt Policy provides five ratios that constitute limits on the total county debt that may be outstanding at any point. The issuance of these bonds will not cause those ceilings to be exceeded. As is shown in the following table, all current and planned 2015 debt including this issue falls within the debt limits established by county policy.
Ratio |
Policy maximum |
Estimated actual 12/31/2015 |
Per capita direct debt |
$600 |
$356 |
Direct debt as % of full market value |
1.50% |
0.56% |
Per capita direct, overlapping & underlying debt |
$3,000 |
$3,483 |
Direct, overlapping & underlying debt as % of full market value 6.00% |
5.50% |
|
Annual debt service as % of budgeted expenditures |
20% |
9.79% |
Outside Attendees: N/A
Multimedia Presentation: N/A