Title
A RESOLUTION DECLARING IT NECESSARY TO AUTHORIZE THE PAYMENT OF THE COSTS OF IMPROVEMENTS TO EXISTING ROADS IN SEDGWICK COUNTY, KANSAS, AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS TO PAY THE COSTS THEREOF AND PROVIDING FOR PUBLICATION OF THIS RESOLUTION AS REQUIRED BY LAW (KDOT ROAD REFINANCING).
Presented by: Chris Chronis, Chief Financial Officer.
RECOMMENDED ACTION: Adopt the resolution.
Body
In 2009, the Board authorized improvements to be made to 119th Street West between 29th Street North and 53rd Street North within the county and authorized the execution of a Transportation Revolving Fund Loan Agreement with the Kansas Department of Transportation to provide financing for the improvement. The county subsequently executed TRF Loan #0118 on July 15, 2009 in the amount of $2,500,000 to pay these project costs, and $2,187,976.79 of the loan will remain outstanding after the next scheduled payment.
In several other years the county also executed TRF loan agreements to finance road and bridge projects, including several which were assessed against benefitting property owners. The total balance of such loans currently outstanding is $5,857,872.45, and the total cumulative interest cost to be paid on those balances is estimated to be $1,822,742.70.
Current conditions in financial markets make possible a reduction of county interest cost by selling General Obligation bonds and using the proceeds to repay the TRF loan. The Resolution finds that it is necessary and advisable to provide for the issuance of the bonds to retire the loan.
Alternatives:
The existing loans could be repaid in accordance with the established terms, but doing so would cause the county to pay about $700,000 more than necessary over the remaining 16 years of the loans.
Financial Considerations:
Repayment of the outstanding TRF loans is contemplated in the county's financial forecast. Issuing bonds to repay the loans will reduce the county's cost...
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