ERIE — Neosho County may be able to pay off the bonds used to fund improvements to Shaw and Elk roads early. Voters approved in 2005 a half-cent sales tax to pay down the bonds for the road work.
Greg Vahrenberg of Raymond James and Associates visited with Neosho County commissioners about the issue on Tuesday.
He said there should be enough in sales tax collections by November or possibly December to pay off the bonds early. He said $2.25 million is still owed on the bonds and sales tax collections are estimated to have $2.5 million by November or December. He said the tax collected and interest earned on it — proceeds will be invested until the payoff, or defeasance — will be enough to pay off bonds and bond expenses.
Once the bonds are paid, the county can notify the Kansas Department of Revenue to sunset the sales tax. Any sales tax collected between the notification and when the tax is no longer collected should be able to be used for purposes similar to the Shaw and Elk Road improvements.
The county used the sales tax and Transportation Revolving Fund loans to pay for the project originally estimated to cost $15 million.
The county has another half-cent sales tax approved in August that will be used for road and bridge improvements in the county. Its start date is unknown.
In other matters, commissioners: — Agreed to purchase road salt from Hutchinson Salt Co. for $63.16 a ton.
— Heard that portions of 70th Road, the Galesburg road, will be skim coated to remove ruts before an overlay is added. Bettis Asphalt will do the work for $31,640 to be paid from the payment in lieu of taxes fund that the county receives from the wind development.
