Hays commission authorizes resolution to pursue bonds for Tallgrass Phase 4

The City of Hays commission voted unanimously June 25 to authorize a project resolution that would allow the city to issue general obligation bonds to finance public infrastructure for Tallgrass Phase 4. Commissioners approved resolution number 2026-009 by a 5-0 vote, moving the bond authorization into the citys capital improvement plan.

Kim Rupp, the citys director of finance, told commissioners the bond issue would combine temporary notes tied to Exit 161 (about $4,035,000 plus interest) and an estimated $6,000,000 for Tallgrass. She said the city anticipates an economic development grant secured by Grow Hays of roughly $2.8 million to $2.9 million that could reduce the sizing, but cautioned: “if the RHID increment is not sufficient, the city will still be required to make the debt service payments.” Rupp outlined the next steps: adoption of a sale resolution (scheduled for the next meeting), a bond sale targeted for Aug. 27, and a final ordinance to lock in interest rates at closing toward the end of September.

The presentation also covered standard bond-process steps: drafting offering documents, completing a rating, and retaining bond counsel and a financial advisor. Commissioners asked for clarifications about prior bond sales and the citys exposure if tax increments or assessments underperform; staff said remedies could include levy adjustments or using general fund resources if necessary, and noted the RHID structure is intended to rely primarily on increment revenues. Motion by Commissioner Jacobs, seconded by Commissioner Cunningham, carried 5-0.