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Olathe approves $25.5M in GO bonds and $154.1M in temporary notes to fund streets and capital projects
Summary
The council approved the issuance of $25,500,000 in general obligation improvement bonds (Series 2025A) and temporary notes totaling $154,100,000; staff said strong credit ratings and competitive bids produced favorable interest rates and proceeds will fund street and facility projects.
The Olathe City Council on June 17 approved the issuance of general obligation improvement bonds (Series 2025A) totaling $25,500,000 and authorized temporary notes totaling $154,100,000 to finance a package of capital projects.
Jamie Robichaud, the city’s director of economy, told the council the city’s credit ratings were reaffirmed—S&P gave a “AA+” rating and the city’s short‑term rating on temporary notes was also reaffirmed—and that the bond and note sales attracted multiple bidders. Robichaud said the low bidder on the GO bond sale produced a true interest cost of about 3.559 percent, and JPMorgan Securities was the low bidder on the temporary notes with a rate of about 2.995 percent.
Proceeds and intended projects Robichaud summarized projects identified to receive proceeds from the GO bonds and temporary notes, though he noted the lists were not exhaustive: - GO bonds (approx. $25.5M): Plum Road, Clare Road, 130th & Plum geometric improvements; annual street reconstruction program - Temporary notes (approx. $154.1M): Santa Fe Ridgeview to Merlin, Fire Station 9, Woodland to Northgate, animal shelter and other large projects
Robichaud said the city received a high number of bids for both sales, which the city viewed as competitive. He also said the city paused a separate revenue bond issuance until later in the summer because the revenue bonds depend on final utility fund balances and the city had not completed final financial statements required for those sales.
Council action The council approved Resolution No. 25‑1057 and Ordinance No. 25‑18 authorizing the GO bonds and approved Resolution No. 25‑1058 authorizing the temporary notes. All three votes passed 5‑0.
Why it matters City officials said the funding will cover large capital projects and help accelerate work identified in the capital improvement program. Robichaud emphasized the city’s conservative budgeting and rapid debt retirement as reasons the city received a strong credit rating.
Quote from staff Robichaud said on the record: “We did our annual rating call with S&P two weeks ago and got our credit rating of double A plus reaffirmed as well as our SP‑1 plus rating on temporary notes.” He called the interest rates “competitive for the city” and noted that proceeds will fund street work and other priorities already planned in the city’s CIP.
Votes and formal actions - Resolution No. 25‑1057 and Ordinance No. 25‑18 authorizing issuance and delivery of General Obligation Improvement Bonds Series 2025A (approved 5‑0) - Resolution No. 25‑1058 authorizing issuance and delivery of General Obligation Temporary Notes Series 2025A (approved 5‑0)
Ending Robichaud said staff will continue to manage timing for a separate revenue bond sale and bring it back to council later in the summer once final financial statements and utility fund balances are complete.
