Prairie Village prepares bond issue

Prairie Village leaders traditionally have avoided bond issues and debt, but they plan to make a major exception because of the recession.

Citing historically low interest rates and reports of low construction bids, the City Council is working toward fashioning a five-year $9.4 million bond issue that could finance about 20 projects.

A mix of street, drainage, parks and energy efficiency projects are proposed for the package.

All of the undertakings already are part of the city’s future capital improvements and park plans, but City Administrator Quinn Bennion said the bonding would allow the work to be done sooner and cheaper.

“This is a great opportunity for us. Normally, we are debt-averse in Prairie Village, and it’s not our norm to look at bonding. But we can get the best of both situations right now,” said Bennion, referring to the low rates and construction costs.

City Councilman Charles Clark, who is retired from the construction industry, agrees with the bonding strategy in part because of what he hears from his former business associates.

“This is a terrific time for construction projects. It’s at least the best time in 10 years. Construction is such a bargain right now,” Clark said. “And I think we will certainly save more on interest on the bonds. These are the best interest rates in, well, ever.”

Clark said borrowing and construction costs probably would rise if the city waited to tackle the work,

Bennion predicted the city would get bond interest rates of 2 percent to 2.5 percent if they were issued now. He is confident the city will get especially good rates because Prairie Village has a high bond rating.

It probably will be about three months before the city finishes preparations to issue the bonds. If interest rates surge another 2 to 3 percentage points in the meantime, Bennion said, the city can back away from the bond plan and return the projects to their original schedule.

If bonds are issued now, all of the work would be done in 2010 and 2011, whereas some of the projects would not be undertaken until 2013 under the existing plan.

Only resurgent rates or strong negative public reaction to the plan probably would derail the bond process, which has gained the unanimous blessing of the City Council, Bennion added.

The bond issue would not need to go to a public vote. But if there are opponents of the measure, they have 60 days from Aug. 18 to file a protest petition. To be valid, petition signatures would need to be at least equal to 10 percent of the electors in the city April 2008 general election.

Even if the petition succeeded, it only could stop proposed park projects, Bennion said. Bonds for street and drainage work would not be subject to a petition.

Clark said that so far he has not heard any public complaint about the plan, but he is not sure how aware residents are of it.

The council is working at the committee level to decide exactly which projects should be part of the bond issue. A number of improvements are listed in the city’s long-range park plans, but the council has not declared which ones should have the greatest priority.

Clark said most residents would be pleased if some elements of that recently completed and adopted parks plan could be implemented sooner than expected.

“There’s a lot of enthusiasm for it, and I’m glad we have a chance to get a jump start on it,” Clark said.

Under consideration are drainage projects in an area near Prairie Lane and Oxford Road and at Alhambra and Mission Road that would total about $3 million; 10 to 12 street reconstruction projects costing about $4 million; about $2 million in park projects; and almost $400,000 in energy efficiency and conservation projects at municipal buildings.

Contact Loren Stanton at 385-6068 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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