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County finance: METCO bond repayment stretched to about 2030; maximum term 2033
Summary
County finance staff told the council that METCO bondholders will receive $11 million before a tax increment area ends and that lower-than-expected personal-property valuations and corporate changes have stretched repayment, now estimated around 2030 with a maximum term through 2033.
County finance staff briefed the council on outstanding METCO bonds, reminding members that under the agreement bondholders will receive $11,000,000 before the tax-increment area is considered repaid and the TIF designation ends.
Staff said the original bonds were expected to mature in 2026, but a drop in personal-property revenues following a corporate ownership change (from Medco to Express Scripts) reduced the tax base and stretched the repayment schedule. The county now estimates repayment could occur around 2030; the bonds’ maximum term runs to 2033.
Finance staff said they are waiting for further direction from the Department of Local Government Finance (DLGF) on how the affected tax rate will be accounted for and that they will provide additional detail next year when more data are available.
No formal action was taken; the presentation was informational and staff asked council members to send questions if needed.
