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Lyon County awards $4.5 million road bond sale and plans priority repairs
Summary
After a public process and rating consultation, Lyon County sold $4.5 million in general-obligation bonds in May 2017 to finance bridge and road projects. The sale was awarded to UMB Bank at a 1.734% true interest rate; proceeds plus premium will fund multiple bridge replacements and overlays.
Lyon County supervisors moved forward with a $4.5 million general-obligation bond sale in May, awarding the issue to UMB Bank of Kansas City at a true interest rate of 1.734 percent. The board followed financial-advisor Speer Financial’s recommendation after a bond-rating process and a public notice and hearing earlier in the year.
The county intends to spend the proceeds on a package of road and bridge projects the board identified as essential for local transportation and economic development. County officials said the bonds include a premium that can be applied to project costs, reducing the net borrowing need.
County Auditor Jen Smit and financial advisor Larry Burger of Speer Financial briefed supervisors on the timing and requirements for the pre-levy resolution, public hearing, and documentation necessary to issue bonds. Burger told the board that issuing bonds as an “essential purpose” influences procedures and that rating agencies place a premium on healthy cash balances. The board formed a subcommittee to work with the engineer, auditor and bond counsel to prepare the financing.
Following the sale, supervisors adopted a debt-service levy to cover anticipated first-year debt costs and approved the contract with the underwriter. The board is using the bonds to advance several priority bridge replacements and road overlays identified in the county’s capital plan.
What’s next: The county is moving forward with project engineering and contracts; individual project schedules and contractor award notices will follow separate public notices.
Attribution: Financial and procedural details summarized from presentations by Speer Financial and County Auditor Jen Smit at board meetings in May and June 2017.
