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Reno County authorizes bond sale steps to finance road improvements tied to EverGy project
Summary
The commission approved resolutions to designate road segments for improvement and to authorize offering for sale general obligation bonds (Series 2026A). Officials described a financing plan combining an EverGy upfront payment, a $2 million KDOT grant and bond proceeds to fund a roughly $10.99 million project.
Reno County commissioners on June 9 authorized preliminary steps to sell general obligation bonds to finance improvements to portions of South McNoo Road and Mills Avenue serving the area south of Hutchinson that ties into the EverGy plant and K-96.
Kevin Cowan, identified in the transcript as bond counsel, said Resolution 2026-18 designates the road segments as primary arterials so the county can proceed with improvements and bond financing. Staff materials cited an estimated total project cost of about $10,987,500 and listed multiple funding sources, including a $2 million KDOT grant and an anticipated upfront payment from EverGy.
Brett Shogran, the underwriter in the transcript, described a plan of finance with an EverGy upfront payment (transcript reference to about $3,967,500 toward segment A), KDOT grant proceeds, and $7,200,000 of general obligation bonds authorized in the sale resolution to fund the remainder. Shogran said the plan assumes pilot payments in lieu of taxes of roughly $1.8 million per year (with a 1.5% annual escalator) would ultimately cover debt service, and he proposed a nine-year bond amortization as a conservative approach. He said that if pilot payments begin sooner than conservatively estimated, the bonds could be paid off earlier.
County staff explained the pilot (payments-in-lieu-of-taxes) agreement with EverGy is still in draft/handshake form and had not been signed by June 9; commissioners noted the pilot agreement and bond sale results will return for further action. County counsel and staff walked through a bond-calendar timeline presented to the commission: submit a Preliminary Official Statement, obtain a rating (the county expects to reaffirm its current rating), hold an order/marketing period in mid-July, and return July 22 with sale results and a final bond resolution; closing is scheduled tentatively for Aug. 11.
Commissioners voted unanimously to approve the offering-resolution (Resolution 2026-9) that authorizes staff and counsel to proceed with the sale process under specified conditions (authorized principal amount and a true interest cost cap referenced in the resolution). They also adopted the road-designation resolution (Resolution 2026-18).
The decisions do not yet obligate the county to sell bonds at a set interest rate or close the financing; they authorize the sale process and the preparation of offering documents. Staff and bond counsel said they will return with pricing and final documents for formal adoption following the marketing period.
