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Court flags financing path for Old Heady Road bridge; KACo outlines $2 million lease option
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Summary
Spencer County officials heard a presentation from Kentucy Association of Counties on Oct. 7 about a potential $2 million lease/loan to finance the Old Heady Road bridge. The loan would require DLG approval and coordination with FEMA reimbursement rules; a second reading of a general obligation ordinance is part of the required local hearing process.
County leaders discussed financing options to rebuild the Old Heady Road bridge during the Oct. 7 fiscal court meeting, when Lonnie Campbell of the Kentucky Association of Counties outlined a possible $2 million fixed‑rate lease/lease‑purchase structure that could advance construction while FEMA reimbursement is pending.
Campbell told the court that FEMA typically requires the locality to complete the project before receiving reimbursement and that projects exceeding $500,000 require review and approval from the Kentucky Department for Local Government (DLG). He said KACo could provide a short‑term lease/loan to bridge cash‑flow needs, but cautioned interest rates and timing could change; he also offered to assist the county with a Notice of Intent and the DLG filing process.
Why it matters: The bridge project was prompted in part by earlier flood and safety events at the site, and county officials said a financing plan is needed to avoid pushing construction into multiple fiscal years. The court identified the ordinance on pages 36–37 of the agenda as a first reading that begins the local hearing process required by state rules for general obligation financing.
Details: County documents included a draft lease schedule for a $2,000,000 lease showing an illustrative interest rate of 4.80% and an administrative fee of 0.20% (an all‑in yield shown at 5.00% in the draft schedule). Campbell emphasized that final rates and draw timing would depend on market conditions and DLG approval; he also said a Notice of Intent does not obligate the county to proceed but does start the approval timeline (estimated 60–90 days). Judge Scott Travis said he expected construction to begin after July of the following fiscal year if approvals and local steps proceed on schedule.