City sells bonds to finance sewage system improvements
FOR IMMEDIATE RELEASE: June 19, 2019
The City of Kansas City continues to make cost-effective improvements to its wastewater infrastructure thanks in part to a June 18, 2019, bond sale which will provide funding for important updates to the City’s aging sewer system. The bonds will fund improvements required as part of the City’s $4.5 billion federal consent decree, which is managed by the City’s Smart Sewer program. Planned projects include sewage treatment, pump stations, force mains and collection system improvements.
The City of Kansas City, Missouri, successfully issued $59.735 million in sewer revenue bonds. The bond proceeds plus $5.9 million in net premium provided $64.73 million.
The bonds used a portion of the $500 million bond authority approved by voters in the August 2012 election. The City will have approximately $100 million in remaining authority to finance future projects.
“KC Water is pleased to be able to take advantage of the ability to issue tax-exempt municipal bonds which results in lower borrowing costs and ultimately savings for our customers,” said KC Water Director Terry Leeds. “Our staff is committed to managing the Department’s resources effectively and efficiently and our bond ratings reflect that commitment.”
The City sold the bonds via competitive sale utilizing the Grant Street Group’s MuniAuction platform. The City received 15 qualified bids from eight qualified bidders during the auction. The bonds were purchased by Robert W. Baird & Co. Incorporated, who submitted the winning bid with a true interest rate of 2.898 percent. The bonds are rated AA and Aa2 by Standard & Poor’s and Moody’s Investors Service, respectively.
Hilltop Securities, Inc. and Independent Public Advisors, LLC served the City on the transaction as co-financial advisors. Gilmore & Bell, P.C. and Clayborn & Associates LLC served as both co-bond counsel and co-disclosure counsel.
Media inquiries and requests for information can be addressed to Doug Buehler, City Treasurer, Finance Department at 816-513-1024.