The debt service tables shown in the different links on this web page list the outstanding debt obligations for the City of Marysville through maturity of each fund or funds listed. The General Obligation Debt Service shows the debt that is subject to the levy of a property tax to retire. The issues that are being retired with a mill levy are the Refund Bond for 1991 G-O (swimming pool improvements), the Fire Equipment & Building Improvements (for fire trucks and improvements on the Koester Block) and the Sewer System Improvements (for the Keystone addition pump station and force main). The Fastline issue was a bond issue to guarantee a USDA loan that is being retired from bond payments by the company. The Temporary Notes for the Walnut Street/Cemetery and KLINK projects are subject to a mill levy but are being paid off with Sales Tax dollars. The State of Kansas reimbursed us $400,000 in 2010 to make the payment on the first note of $445,000. All current general obligations will be retired by 2018 when the last bond for the fire equipment is paid off. The table shows that the debt service drops each year into the future and almost drops in half in 2013 vs. the 2012 level. There are explanations on the table showing how much of a mill levy is, or might be, needed to pay the debt service for each of those years past 2011. Very little growth in the valuation is expected and if no other General Obligation (GO) debt is issued the mill levy for debt service should be very close to what is shown. The needed mill levy is calculated only on the Total G.O. Bonds totals and not the Total Yearly Debt Service because sales tax is paying for the Temporary Notes.
As of Dec. 31, 2010, the total outstanding general obligation debt is only $1,533,556. The remainder of the outstanding debt is an obligation of the water and sewer departments for major improvements made over the last decade and a half.
The Sales Tax Debt service shows the current obligations that are being paid with sales tax receipts. The reader must note that there is redundancy in the Sales Tax Debt table and the GO debt table because they both show the Temporary Note issues. The Temporary Notes and the KDOT Revolving Loans are being paid off with Sales Tax funds and after 2015 there will be no remaining sales tax obligated debt paid with sales tax receipts unless future short or long term debt obligations are issued between now and 2015. The City Council did vote a few years ago during the planning of the water tower project that they would use up to $100,000 of Sales Tax funds to pay for the KDHE loan to build the water tower. The debt service on that loan is an obligation of the Water Revenue Fund and is shown on that funds debt obligations table. However, sales tax funds will be used to retire the debt even though it is not shown on this table.
On the link for Water and Sewer Utility Debt Service there are two tables to review. Please click on the arrow to advance to the second page when viewing these tables. The Water Revenue Debt Service shows the outstanding debt obligations for the water utility including the KDHE loan for the tower and the wells. The loan amount was $2,008,008 and even though KDHE has not provided us with a final amortization schedule, the table should be fairly accurate. The Eastside Water Improvements was a KDHE loan that was obtained in 2002 to pay for the installation of the water system on the east side of Marysville that was formerly served by the old RWD#2. That issue matures in 2023 and annual payments are about $22,112. The Water tower & wells project was completed in 2010 and regular payments begin in 2011 on an amortization schedule provided by KDHE when the loan was approved. A final schedule will be generated by KDHE one year after completion of the project, but the loan will be fully amortized in 2030.
This same link has a second page that lists the Sewer Revenue Debt Service for the Sewage Revenue Fund. The two obligations we have are the Eastside sewer & lagoons and the Breeding Heights sewer. The former project was incurred in the late 1990’s when the City had to build a sewer lagoon and force main to replace the old mechanical plant and was also requested to annex the property east of the then current city limits which totaled more than 500 acres, roughly bounded by North Street on the north, 12th Road on the east, Keystone Road on the south and the Country Club Lake on the west to provide sewer service for failing septic systems. The project came in two phases, first with the lagoons and a force main to the lagoons, along with an outfall sewer that was constructed through the drainage area for the County Club Lake on the south side of the highway. In 2000 the second phase of the project began with construction on the eastside sewer project. Since debt payments began in the late 1990’s with payments stretching out over 20 years, the debt service on this project will be retired in 2018. Residents in the eastside area agreed to pay 30% of the cost of the sewer with an annual assessment over 10 years of $584 to pay each owners share of $5,840. Those assessments began in 2002 and will conclude with the tax bills in 2012. However, with the end of the assessments which currently generate about $50,000 annually toward a $315,520 loan payment, the City will have to continue to fund the debt service without the assessments, thus creating a need to raise an additional $50,000 or more each year for the years 2013 to 2018 when the loan is amortized.
The Breeding Heights project was thrust upon the City when the area around the West Heights addition was forced by the State to connect with a recognized sewer system, the only one being of course the City’s lagoon system just southwest of the area in question. A $1.1 million dollar loan was obtained from KDHE for the project and owners there were assessed $7,000 because there were fewer owners to share the burden. They are assessed $700 a year for 10 years and in 2025 that loan will be paid off. Those assessments, which generate about $29,000 a year, will cease with the tax bills in 2015 and the City will have another ten years to pay on that loan without the aid of the assessments, requiring for the years 2016 to 2018 to raise another $29,000 on top of the $50,000 that will cease with the east side sewer assessments. The loan payments for these two projects are funded fully through sewer rates which will have to be adjusted annually to provide sufficient funds to pay the debt service.
GOT QUESTIONS?? Call: 785-562-5331, City Hall and ask for Rick Shain, City Administrator -or- Debbie Price, City Clerk
