Johnson County issues wastewater bonds for Blue River and Mill Creek plant upgrades

Johnson County issues wastewater bonds for Blue River and Mill Creek plant upgradesThe Board of County Commissioners has authorized Series 2026A General Obligation Internal Improvement Bonds, drawing a record 14 bidders to finance a trio of wastewater treatment and pump station improvements.

The bond package will fund Phase 2 of the Blue River Wastewater Treatment Plant, improvements at the Mill Creek Influent Plant, and renewal and dechlorination work at the Belender Pump Station.

While backed by ad valorem taxes, the county intends to pay the debt service using wastewater capital finance charges allocated in the proposed 2027 budget.

Backed by AAA ratings from Moody's, S&P, and Fitch, the county secured a 3.89% true interest cost from winning bidder TD Financial Products.

The Johnson County Board of County Commissioners unanimously approved the issuance of Series 2026A General Obligation Internal Improvement Bonds on August 6 to finance a trio of critical wastewater infrastructure projects. The bond package will fund Phase 2 of the Blue River Wastewater Treatment Plant, improvements to the Mill Creek Influent Plant, and renewal and dechlorination upgrades at the Belender Pump Station. According to staff presenter Leslie Friedle, while the general obligation bonds are technically payable from ad valorem taxes, the county plans to cover the debt service entirely through wastewater capital finance charges. Sufficient funds for the repayment have already been factored into the county's proposed 2027 budget. The county’s strong financial position—bolstered by affirmed AAA ratings from Moody's, S&P, and Fitch—drew significant market interest despite recent economic volatility. Municipal advisor Elizabeth Bergman of Baker Tilly noted that the county received 14 bids for the general obligation bonds, marking the highest number of bidders Johnson County has ever seen for such an offering. TD Financial Products emerged as the winning bidder, securing a true interest cost of 3.89%, with competing bids ranging up to 4.08%. Bergman noted that the county benefited from a lack of competing comparable municipal bond sales in Kansas during the week of the pricing, allowing it to capture strong investor attention. In a separate administrative action noted during the meeting, the county also approved a series of resolutions enlarging a privately financed sewer district. The move provides for the assessment of applicable fees and charges for the Consolidated Main Sewer District across several expanding areas, including vicinities near 89th Street and Clare Road, and 176th Street and Fairway Road.