The City of Parkville is pleased to announce that it has reduced interest costs for two existing neighborhood improvement district (NID) limited general obligation bonds, resulting in a taxpayer savings of over $1.3 million. Because of a favorable low interest rate environment, on April 21st the Board of Aldermen authorized a competitive bond sale. The bond sale was held on June 2nd and resulted in a bid of lower interest rates and the savings. As a result, the existing bonds will be refunded and reissued at a lower interest rate.
In 2014, the City issued bonds to construct sanitary sewer improvements for the Brush Creek Drainage Neighborhood Improvement District and road improvements for the Brink Meyer Road Neighborhood Improvement District. Both NIDs, located in western Parkville near Interstate 435 and Highway 45, were created in 2006 under the Neighborhood Improvement District Act by a petition of at least two-thirds of the owners of record of all the real property located within each district’s boundaries. The property owners petitioned to assess themselves for the costs of public improvements that would benefit their properties.
Both projects are funded through annual assessments made by property owners within each NID and through transfers from the City’s general revenue budget. Property owners and the City’s general budget will benefit from the interest savings, which will average approximately $97,000 per year until 2034. In 2019, the City also entered into a real estate sales agreement to sell property it obtained from foreclosure proceedings within the two NID districts. The agreement calls for the payment of $6.4 million to the City over the next 15 years. The interest savings, and proceeds from the land sale, will result in significant annual budget savings for the City and enable it to increase funding for other neighborhood capital improvements in the community, including street, storm water and public safety improvements.
The City’s financial advisor Baker Tilly presented the outcome of the bond sale to the Board of Aldermen at its June 2nd meeting. The refinancing, $3,995,000 for the Brush Creek Drainage Bonds and $2,730,000 for the Brink Meyer Road Bonds, were issued at an average interest rate of 1.8%. Standard & Poor’s Rating Agency also affirmed the City’s AA Credit Rating. An AA rating is an indication that the City’s capacity to meet its financial commitments is very strong.
For more information, contact City Administrator Joe Parente at (816) 741-7676.
