Johnson County maintains highest credit ratings possible on bond sale for new Health Services Building

Today, the Johnson County Board of County Commissioners took the first financial step to fund construction of a new Health Services Building, a project that will make it more efficient for county residents to obtain comprehensive health services.

The county approved the issuance of just over $59 million in lease purchase revenue bonds for the project. The bonds sold to TD Securities (USA) LLC at 3.66% interest, attracting nine bidders and substantially beating our market estimate of a 4% rate.

As part of this bond sale, Johnson County Government maintained its coveted AAA credit rating from Standard & Poor's and Moody's Investor Services…the highest credit rating possible.

"We continue to receive the highest rating possible from these two highly respected financial agencies, which is a testament to the county's excellent financial management and stewardship of taxpayer dollars," said Johnson County Board of County Commissioners Chairman Mike Kelly. "This rating allows us to utilize very competitive interest rates when we issue debt, creating millions in savings for our taxpayers."

Johnson County Government has maintained its coveted "Triple Triple A" bond rating since 2009. A testament to our budgeting and financial management, this achievement places us in the top 2% of all U.S. counties.

The bond rating agencies made the following statements in their recent evaluations:

• Moody's:The stable outlook reflects the expectation that continued economic expansion, utility rate increases, and formal financial policies will enable the county to maintain its strong financial position and manageable long-term liabilities while implementing the capital improvement plan
• Standard & Poor's: Johnson County's economy continues to strengthen, with gross county product that is projected to increase faster than the state and the nation and with population growth and recent assessed value gains, as well as a competent management team that carefully balances cash-funded capital with debt issuances while maintaining reserves at or above the county's formal reserve policy all support its 'AAA' rating.

The new, integrated Johnson County Health Services Building will bring together services provided by three county departments: Mental Health, Health and Environment, and Aging and Human Services. The facility will be built near the site of the existing Health Services Building on the county's Sunset Campus at 119th Street and Ridgeview Road in Olathe. It will replace the Health Services Building and the Olathe Mental Health Center, 1125 W. Spruce St.

The total project cost is estimated at $113.5 million with approximately $93.5 million in debt funding by county bonds. The county will use $20 million in one-time funding for the project. A second bond issue to provide final financing of the new Human Services Building is expected to take place in mid-2026.

Find more information about the new Health Services Building.