Olathe City Council approves $25.5M general obligation bond for infrastructure projects

Olathe City Council has reaffirmed its strong financial standing, maintaining a double-A plus credit rating and a stable outlook, following a recent annual rating call with S&P. The council discussed the implications of this rating during their meeting on June 17, 2025, highlighting the importance of conservative budgeting and effective financial management in achieving this status.

The council approved a general obligation bond sale of $25.5 million, receiving 11 competitive bids, with Huntington Securities offering the lowest interest rate of 3.559%. This funding will support critical infrastructure projects, including road improvements and the annual street reconstruction program. Additionally, a temporary note sale of $154.1 million was authorized, with JPMorgan Securities winning the bid at an interest rate of 2.995%. These financial instruments are essential for advancing several key projects, such as the Santa Fe Ridgeview to Merlin project and the construction of Fire Station 9.

In a related discussion, the council decided to pause the issuance of revenue bonds until later this summer due to delays in finalizing financial statements. This decision reflects the city's commitment to ensuring accurate financial reporting and maintaining the necessary debt coverage for utility funds.

The meeting also addressed the development of a new parking facility in downtown Olathe, aimed at enhancing accessibility for residents and visitors. This project is seen as vital for supporting local businesses and improving the overall experience in the downtown area.

The council's decisions during this meeting underscore Olathe's proactive approach to financial management and infrastructure development, setting the stage for continued growth and community enhancement.