Call to Order and Roll Call
The Capital Projects and Bond Oversight Committee met on Tuesday, May 24, 2016, at 1:00 PM, in Room 169 of the Capitol Annex. Senator Chris Girdler, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Chris Girdler, Co-Chair; Representative Chris Harris, Co-Chair; Senators Julian M. Carroll, Stan Humphries, and Christian McDaniel; Representatives Steven Rudy and Jim Wayne.
Guests: Mr. Chris Brummett, Director of Asset Management, Kentucky Community and Technical College System; Ms. Elizabeth Baker, Planning Director, University of Kentucky; Mr. Scott Aubrey, Director of Real Properties, Finance and Administration Cabinet; Ms. Jami Johnson, Financial Analyst, Kentucky Infrastructure Authority; Ms. Katie Smith, Executive Director, Office of Financial Services, Cabinet for Economic Development; Ms. Sandy Williams, Deputy Executive Director, Office of Financial Management, Finance and Administration Cabinet; Mr. Jeremy Ratliff, Managing Director of Multifamily Programs, Kentucky Housing Corporation; and Mr. Mike Hynns, President, the Housing Partnership, Incorporated.
LRC Staff: Josh Nacey, Committee Staff Administrator; Julia Wang, Analyst; and Jenny Wells, Committee Assistant.
Approval of Minutes
Senator McDaniel moved to approve the minutes of the March 15, 2016 meeting. The motion was seconded by Representative Wayne and approved by voice vote.
Correspondence Items
Mr. Nacey, Committee Staff Administrator, reported on a series of letters between the committee and the Finance and Administration Cabinet (Cabinet), as well as a letter to the Department of Fish and Wildlife. Also, there was an individual letter from Senator Girdler to the Cabinet. Some of the letters concerned the committee’s lack of approval for six land acquisitions at the March meeting while the others involved the cancellation of the April meeting. The responses from the Cabinet informed the committee of its intent to proceed with the land acquisitions as well as those projects that were not reviewed by the committee in April as a result of the cancellation of that meeting.
Information Items
Mr. Nacey said there were six informational items for the committee members to review. The first two items were advertisements for leased space in Franklin County. The leases were for the Tourism, Arts, & Heritage Cabinet the Department of Education. The third item included the quarterly status reports on capital projects for the Administrative Office of the Courts, the Commonwealth Office of Technology, the Finance and Administration Cabinet, and the universities that manage their own capital construction programs. The fourth item was the Semi-Annual Report of the Kentucky Asset/Liability Commission (ALCo) which discussed the state’s investment and debt portfolios and associated interest rate derivative contracts. The fifth item was an update on the Louisville-Southern Indiana Ohio River Bridges (LSIORB) tolls. Mr. Nacey said that on Wednesday, May 11, 2016, the bi-state tolling bodies composed of officials from both Kentucky and Indiana, met to consider the proposed tolling rates for the LSIORB. The officials voted to approve the rates that were presented to the committee during its October meeting. Further, the resolution passed on May 11 changed the way that medium and large categories of vehicles were referred to: from “Medium Trucks” and “Heavy Trucks” to “Medium Vehicles” and “Large Vehicles.” The sixth item was a summary of legislation introduced this last session related to the committee’s jurisdiction and that was enacted into law.
Representative Wayne expressed his displeasure at how the tolling issue was handled by the bi-state authority. The tolling authority does not represent the people who live in the area and who will be using it. For instance, the tolling authority has no minority representatives, no elected officials, and no low-income individuals. Representative Wayne was also critical of the $2 rate, which contradicted a promise that the tolls would be $1 dollar each way. The authority’s handling of the May 11 meeting was atrocious. The authority did not give the press or the public access to the report prior to the meeting. The report was ramrodded through the authority and the press only gained access to it after the meeting when there was no opportunity for vetting.
Project Reports from the Universities
Mr. Chris Brummett, Director of Asset Management, Kentucky Community and Technical College System (KCTCS), reported on one lease renewal between Jefferson Community and Technical College (JCTC) and the Bullitt County Board of Education for the JCTC Bullitt County Campus. The lease is for 22,943 square feet and the annual cost is $178,329.
Senator McDaniel said that he would like Mr. Brummett to convey to KCTCS’s administration and the Board of Regents his disapproval of the level of compensation given to KCTCS’s former president by awarding him the sum of $815,000. Additionally, Senator McDaniel said that KCTCS has lost the confidence of both the General Assembly and the citizens of Kentucky by compensating the outgoing president in addition to what he has been allowed to accumulate over the years.
Senator McDaniel made a motion to approve the lease renewal, seconded by Representative Wayne. The motion passed by a roll call vote of 7 yeas, 0 nays.
Ms. Elizabeth Baker, Planning Director, University of Kentucky (UK), reported on nine items for UK. The first item was a report on the use of the Construction Manager-at-Risk delivery method for the renovation and expansion of the UK Law Building, authorized by the General Assembly in House Bill 265 of the 2012 Regular Session. No action was required.
The second item was for a funding revision to the UK Construct Housing 1-Alpha Gamma Rho (AGR) fraternity project. In August 2015, the committee approved the use of $3.06 million in private funds in lieu of restricted funds to construct a 21,000 square foot facility for the AGR fraternity. UK is requesting another funding revision for the project. The previous plan involved having AGR pay $3.06 million of the cost through private cash, which comprised the substituted component of the financing for this project. The remaining $2.94 million was to have come from a loan from UK to the fraternity. UK seeks to change this arrangement because of the accelerated move of the AGR fraternity into the new facility in order to build the new Lewis Hall at ARG’s current site. Consequently, AGR has not had sufficient time to complete their fundraising efforts. The new arrangement calls for the use of $1,093,888 in private funds that AGR has raised so far. In addition, UK will use $1,000,000 of restricted funds, authorized by the General Assembly in House Bill 235 of the 2014 Regular Session. The loan from UK to AGR will increase to $3,906.111. Currently, UK owns the land and will own the building.
Representative Wayne said he wished to explain his vote by commenting that this arrangement is set up in such a way that it is not necessarily charity, but is a way to provide housing for the students. He further noted that the long term benefits are to the University.
Senator Carroll made a motion to approve the funding revision, seconded by Representative Harris. The motion failed to pass by a roll call vote of 3 yeas, 4 nays.
The third project was for a lease renewal for the Kentucky Cancer Center, Cancer Research Program. The renewal is for 7,228 square feet and will have an annual cost of $110,154. The effective date is July 1, 2016 with an expiration date of June 30, 2018. Senator Humphries made a motion to approve the lease renewal, seconded by Senator McDaniel. The motion passed by a roll call vote of 7 yeas, 0 nays.
The fourth item was for a lease renewal for the UK College of Education, Collaborative Center for Literacy Development and Reading Recovery program. The renewal is for 9,150 square feet and will have an annual cost of $101,712. The effective date is July 1, 2016 with an expiration date of June 30, 2018. Senator McDaniel made a motion to approve the lease renewal, seconded by Representative Wayne. The motion passed by a roll call vote of 7 yeas, 0 nays.
The fifth item was for a lease renewal for the UK Center for Drug and Alcohol Research. The renewal is for 7,119 square feet and will have an annual cost of $112,124. The effective date is July 1, 2016 with an expiration date of June 30, 2018. Senator McDaniel made a motion to approve the lease renewal, seconded by Representative Rudy. The motion passed by a roll call vote of 7 yeas, 0 nays.
The sixth item was for the renovation of the UK Confucius Institute, Lucille Little Library. The project will involve the renovation of 6,200 square feet of interior space for classrooms, office and gallery space, and 1,800 square feet of exterior space. The cost of the project is $1,700,000. The Board of Trustees approved it December 15, 2015, and the Council of Postsecondary Education approved it at their April 26th meeting.
In response to Senator McDaniel’s question as to whether the Confucius Institute receives its funds from the Chinese government, Ms. Baker said this is correct. Upon Senator McDaniel’s request for further information regarding the Institute, Ms. Baker said it is her understanding the Institute serves as a gateway for language, culture, art, and other businesses on campus for the University’s Chinese students. Senator McDaniel said the Institute serves as a cultural exchange. In response to Senator McDaniel’s questions on recently having read about possible closings of the Institute, Mr. Nacey said he was not aware of any closings and borrowed from substantive research he had done in 2015 when the committee reviewed the UK Western Kentucky project. Mr. Nacey said that a U.S. House subcommittee had some concerns and looked into the Institute regarding academic freedom in terms of what the professors can teach and other related issues. Mr. Nacey said that, according to the UK’s Confucius Institute website, the Institute conforms fully to the University’s policies regarding grant management and academic freedom; the faculty has exclusive purview over academic matters. In response to Senator McDaniel’s request for more information on the project, Ms. Baker said she would obtain additional information and forward it to Senator McDaniel and to the committee.
Representative Wayne made a motion to approve the renovation, seconded by Senator Carroll. The motion passed by a roll call vote of 7 yeas, 0 nays.
The seventh item was for a lease modification of the UK Human Development Institute. The modification would allow the Institute to consolidate its operations into one location to improve efficiency and collaboration. The lease modification will increase the square footage from 6,266 square feet to 8,669 square feet, with an annual rent increase of $39,649, and will have an annual cost of $143,038. No action was required.
The eighth item was for a lease modification of the UK HealthCare Integrated Business Unit (IBU) at the Coldstream Research Campus to accommodate additional staff. The university will increase the square footage by 2,995 square feet, with an annual rent increase of $51,663.75, and will have an annual cost of $209,674. The University Board of Trustees approved this lease on May 3. Senator McDaniel made a motion to approve the lease modification, seconded by Representative Wayne. The motion passed by a roll call vote of 7 yeas, 0 nays.
The final item to report was for the purchase of three pieces of equipment by the university. The first equipment purchase is a new ambulance for pediatric transport and will be located at the UK A.B. Chandler Hospital. The new ambulance will be for a second transport team due to increased volume of emergency cases. The cost is $224,249. No action was required.
The second equipment purchase is the Digital X-Ray System which is an overhead tube crane mounted machine and will be located at UK HealthCare, Turfland. The System will serve patients more quickly and efficiently as it provides benefits of less movement required for positioning and faster and more comfortable access to different areas of the body. The cost is $228,879. No action was required.
The third purchase is for the Radon Digital X-Ray and Panoura Digital Panoramic Systems and will be located at the UK Kentucky Clinic (Transplant Clinic). The new digital x-ray system will be utilized for all patient imaging as it provides sharper images and immediate results for the doctors, and more ergonomic positioning which will translate into less wait time for the patients. The panoramic system adds technology to allow for faster and better planning of implants, reducing the wait time for patients. The cost is $376,379. No action was required.
Lease Reports from Finance and Administration Cabinet Management
Mr. Scott Aubrey, Director, Division of Real Properties, Finance and Administration Cabinet, presented two items. The first item was for a lease modification less than $50,000 for the Cabinet for Health and Family Services. The modifications will accommodate the Kentucky Psychological Association. Improvements will be made in order to provide reasonable accommodations for disabled employees, and to install new mail equipment. Two estimates were obtained; one estimate in the amount of $49,815 was received from Warnick Construction. The second estimate, in the amount of $32,869 was received from various other contractors. The low bid was selected and will be amortized through June 30, 2017. No action was required.
The second item was for a new lease exceeding $100,000 for the Public Protection Cabinet/Labor Cabinet, General Administrative and Procurement Service. The total square feet is 14,699 square feet at cost of $12.26 per square foot. The total amount of the lease is $180,210 and will expire June 30, 2023. Representative Wayne made a motion to approve the new lease, seconded by Senator Carroll. The motion passed by roll call vote of 7 yeas, 0 nays.
Project Reports from the Finance and Administration Cabinet
Mr. Nacey, Committee Staff Administrator, reported on two pool projects from the Finance and Administration Cabinet. The first project was for the Department of Facilities and Support Services for the Piller UPS Replacement located at the Commonwealth Office of Technology Building, in the amount of $615,000. The project will replace the uninterrupted power source (UPS) unit at the State Data Center, Frankfort. No action was required.
The second project was for the Department for Facilities and Support Services for the Capitol Annex terrace repairs, in the amount of $1,450,000. The project will make necessary repairs to the Capitol Annex terrace, including waterproofing; repairing stone walkways, bases, and sills; cleaning; and sealing. No action was required.
Report from the Office of Financial Management
Senator Girdler stated that the reports from the Kentucky Infrastructure Authority (KIA) would be heard and voted upon as a single item unless there were any objections. Hearing none, Ms. Jami Johnson, Financial Analyst, KIA, reported on twelve items. The first item was for a Fund A loan for the City of Prestonsburg in Floyd County. The request was for a $2,033,200 Fund A loan for the Stephens Branch and Lower Sewer Line Extension project. The loan will have a 20 year term, an interest rate of 0.75 percent and an annual estimated debt service payment of $85,299.
The second item was for another Fund A loan for the City of Prestonsburg. The request was for a $2,163,000 loan for the US 23 Banner Community Sewer System project. The loan will have a 20 year term, an interest rate of 0.75 percent and an annual estimated debt service payment of $90,744.
The third item was also for a Fund A loan for the City of Prestonsburg. The request was for a $1,952,900 Fund A loan for the KY 1428 and Stonecrest project. The loan will have a 20 year term, an interest rate of 0.75 percent and an annual estimated debt service payment of $81,930.
The fourth item was for a Fund A loan for the City of Hodgenville in Larue County. The request was for a $970,000 Fund A loan for the Sewer Improvements Phase II project. The loan will have a 20 year term, an interest rate of 0.75 percent and an annual estimated debt service payment of $54,259.
The fifth item was for a Fund A loan for the City of Frankfort in Franklin County. The request was for a $4,529,000 Fund A loan for the Glenn’s Creek Interceptor project. The loan will have a 20 year term, an interest rate of 1.75 percent and an annual estimated debt service payment of $278,423.
The sixth item was for a Fund A loan for the City of Prestonsburg in Floyd County. The request was for a $600,000 Fund A loan for the Big Sandy Regional Wastewater Treatment Plant project. The loan will have a 5 year term, an interest rate of 2.75 percent and an annual estimated debt service payment of $130,461.
The seventh item was for a Fund A loan for the Regional Water Resource Agency in Daviess County. The request was for a $200,000 Fund A loan for the Cedar Hills and Friendly Park Village Plant Rehabilitation project. The loan will have a 1 year term, an interest rate of 1.75 percent and an annual estimated debt service payment of $10,151.
The eighth item was for a Fund B loan for the City of Morganfield in Union County. The request was for a $260,000 Fund B loan for the Camp Breckinridge project. The loan will have a 5 year term, an interest rate of 2.75 percent and an annual estimated debt service payment of $56,533.
The ninth item was for a Fund F loan for the City of Hodgenville in Larue County. The request was for a $962,000 Fund F loan for the Hodgenville Phase 1A Water System Improvements project. The loan will have a 20 year term, an interest rate of 0.75 percent and an annual estimated debt service payment of $40,719.
The tenth item was for a Fund F loan for the City of Cynthiana in Harrison County. The request was for a $1,056,658 Fund F loan for the West By-Pass Water Main project. The loan will have a 20 year term, an interest rate of 0.75 percent and an annual estimated debt service payment of $51,426.
The eleventh item was for a Fund F loan for the City of Hodgenville in Larue County. The request was for a $593,000 Fund F loan for the Lincoln Boulevard South Replacement project. The loan will have a 20 year term, an interest rate of 0.75 percent and an annual estimated debt service payment of $25,100.
The final item was for a Fund F loan for the City of Harrodsburg in Mercer County. The request was for a $2,887,200 Fund F loan for the Water Distribution Main 2015 project. The loan will have a 20 year term, an interest rate of 0.75 percent and an annual estimated debt service payment of $162,946.
Senator McDaniel made a motion to approve all twelve loans, seconded by Senator Carroll. The motion passed by a roll call vote of 7 yeas, 0 nays.
Office of Financial Management
Ms. Katie Smith, Executive Director, Office of Financial Services, Cabinet for Economic Development, presented the first item which was the Economic Development Bond (EDB) fund grant in the amount of $500,000 for the Shelby County Fiscal Court for the benefit of Diageo Americas Supply, Incorporated. Diageo is the world’s leading premium drink business located in 180 countries with over 28,000 employees. The company plans to expand its presence by constructing a new distillery and warehouses in Shelby County. The anticipated project investment is approximately $115,000,000 and the company will be required to create 31 new, permanent, full-time Kentucky resident jobs paying average hourly wages of $29 including benefits within 3 years of Kentucky Economic Development Finance Authority (KEDFA) approval and maintain those jobs for 3 additional years. The agreement will include job and wage reduction provisions for failure to meet either of the requirements. The project was approved by KEDFA at its meeting on April 28, along with the State Properties and Buildings Commission at its meeting on May 12.
In response to a question from Representative Wayne, Ms. Smith said that the economic development bond grant consists solely of the half million dollars. She stated that this project has also been approved for incentives under the Kentucky Business Investment Program for up to town and half million dollars. Those incentives are corporate income tax credits. Diageo has also been approved for incentives under the Kentucky Enterprise Initiative Act up to $1.5 million dollars. In response to a question by Senator McDaniel, Ms. Smith said that the funds will flow through Shelby County who will then disburse it directly to Diageo. Ms. Smith said that the money would be used to build the facility and to create the jobs. In response to another question from Senator McDaniel, Ms. Smith confirmed that the $500,000 EDB grant is in addition to the other rebates going to them. Senator McDaniel then commented on the impact these projects have on localities and that the tax code and Kentucky’s business environment need to be examined. Senator Carroll stated that he supported this project and agreed that it is time for the legislature to reform the tax code. Representative Wayne said that a few of the initiatives put forth in a recent report from the tax reform task force have been considered.
Senator McDaniel made a motion to approve the grant, seconded by Senator Carroll. The motion passed by roll call vote of 7 yeas, 0 nays.
Senator Girdler stated that the bonds reported by the Office of Financial Management had seven items, Agenda items 8.B.2 through 8.B.8., require a roll call vote and would be voted upon as a single item. There were no objections. Ms. Sandy Williams, Deputy Executive Director, Office of Financial Management, Finance and Administration Cabinet, reported on the Kentucky Higher Education Student Loan Corporation for $100,000,000 Student Loan Backed Notes, Series 2016-1. The notes are being issued for the purpose of financing Federal Family Education Loan Program (FFELP) Student loans and rehabilitated FFELP loans recently acquired by KHESLC. The proposed date of sale and issue for this direct purchase will happen the week of June 16. It has an anticipated rating by S&P of AA+. The expected initial interest rates are 1 month LIBOR plus 0.9 percent for the tax-exempt portion and 1 month LIBOR plus 1.25 percent for the taxable portion.
The next item was for Kentucky Housing Corporation (KHC) Single Family Housing Revenue Bonds, 2016 Series A, in an amount not to exceed $75,000,000. The notes are being issued to refund certain Series 2006 and 2007 bond issues for an aggregate net present value savings of 4.4 percent. The proposed date of sale is June 9 with a proposed settlement date of June 28, 2016. The estimated true interest cost for this negotiated sale is 3.66 percent to generate a net savings of over $3,000,000.
The next item was for KHC Tax-Exempt Conduit Multifamily Housing Revenue Bonds, Series 2016, in the amount of $27,628,750. The bonds will be issued to finance the acquisition, rehabilitation, and equipping of two multifamily residential rental facilities consisting of 294 one-bedroom units known as the Jackson House Apartments project. The project will be located at two locations, 301 South 9th Street and 820 Washington Street, Paducah, Kentucky. The proposed dates of sales and issuance are in June, 2016, with an anticipated net interest of 4.55 percent.
The next item was for KHC Tax-Exempt Conduit Multifamily Housing Revenue Bonds Series 2016, in the amount of $19,400,000. The bonds will be used to finance the acquisition, construction, and equipping of the Riverport Family Apartments project, which is a 240 unit multifamily residential rental facility located at 4646 and 4650 Cane Run Road, Louisville, Kentucky. The proposed development is part of a plan of development which will provide a campus that includes a Family Scholar House, senior housing and family apartments. KHC conducted a public hearing concerning the proposed project on May 16, 2016. Proposed date of sale is June 15, 2016, and the bonds are to be issued on June 30, 2016. The transaction will be a Private Placement with Red Stone, LLC. The anticipated net interest rate is 4.225 percent.
The next item was for KHC Tax-Exempt Conduit Multifamily Housing Revenue Bonds, Series 2016, in the amount of $7,300,000. These bonds will be used to finance the acquisition, construction, and equipping of the Riverport Family Scholar House project. This is a 64 unit multifamily property that is a component of the previously discussed project. The proposed date of sale is June 15, 2016, with an issuance date of June 30, 2016. This transaction will be a Private Placement with Red Stone, LLC. The anticipated net interest rate is 4.225 percent.
The next item was for KHC Tax-Exempt Conduit Multifamily Housing Revenue Bonds, Series 2016, in the amount of $8,700,000. These bonds will be used to finance the acquisition, construction, and equipping of the Riverport Senior Apartments project. It is an apartment project to the previously discussed project. This project, a 108 unit property, is also a component of the previously discussed Riverport project. The proposed date of sale is June 15, 2016, with an issuance date of June 30, 2016. This transaction will be a Private Placement with Red Stone, LLC. The anticipated net interest rate is 4.225 percent.
The next item was for Western Kentucky University General Receipts Refunding Bonds, 2016 Series B, in the amount of $28,915,000. The bonds will be used to partially advance refund Western Kentucky University General Receipts Bonds, 2009 Series A; and pay the costs of issuance. The initial proposed date of sale was June 9, 2016. The proposed settlement date of June 30, 2016, has been postponed to an unscheduled date in late summer or early fall to allow the University to take advantage of changing market conditions or to combine this deal with a new money deal to take advantage of economics associated with the costs of issuance. The estimated true interest cost for this competitive sale is 2.544 percent to generate a net present value savings of $1,836,524, or 6.473 percent.
In response to Senator McDaniel’s question as why some of the universities use OFM as their financial advisors and other entities use outside firms, Ms. Williams said that OFM takes a financial advisory role in the administrative arena, provides technical and administrative support, and ensures the correct approval processes. Ms. Williams said that although OFM is listed as a financial advisor, it does not provide substantive financial advisory services in terms of the bond market.
In response to Representative Wayne’s questions regarding the Paducah project and notifications of KHC projects to the district legislators, Ms. Williams deferred to Mr. Jeremy Ratliff, Managing Director of MultiFamily Programs, Kentucky Housing Corporation (KHC), and to Mr. Mike Hynns, President, the Housing Partnership, and Incorporated (HPI). Mr. Ratliff said that it is the policy of KHC that the developer notify the local legislator regarding each project. Mr. Hynns said that the housing project located in Paducah is a renovation of the existing affordable housing facility dedicated for senior citizens in Paducah and that HPI has served all the requisite notices of the required by KHC. In response to another question by Representative Wayne, Mr. Hynns said that HPI had not received any complaints from local representatives regarding the Paducah project.
Senator Carroll made a motion to approve the seven bonds, seconded by Representative Wayne. The motion passed by a roll call vote of 7 yeas, 0 nays.
The next item was for Morehead State University (MSU) General Receipts Revenue Refunding Bonds, 2016 Series A, which priced March 1 and closed on March 22, 2016. The bond proceeds were used to refund the outstanding MSU General Receipts Bonds, 2007 Series A, and pay the costs of issuance. The all-in true interest cost was 2.486 percent which generated a net present savings of $169,712, or 5.537 percent. No action was required.
The next item was for Eastern Kentucky University (EKU) General Receipts Revenue Refunding Bonds, 2016 Series A, which priced March 2 and closed March 23, 2016. The bond proceeds were used to refund the outstanding EKU General Receipts Bonds, 2007 Series A, and pay the costs of issuance. The all-in true interest cost was 2.269 percent which generated a net present savings of $438,507, or 7.973 percent. No action was required.
The next item was for State Property and Building Commission (SPBC) Revenue Bonds, Project No. 112 Series A, and SPBC Revenue and Revenue Refunding Bonds, Project No. 112 Series B, priced March 1 and closed March 23, 2016. Bond proceeds were used to finance the construction of a Research Building on the campus of the University of Kentucky to refund SPBC projects 87, 88, 89, 90, and 93; and pay associated costs of issuance. The all-in true interest cost was 2.785 percent which generated a net present value savings of $54,724,028.61, or 9.22 percent. No action was required.
The next item was for University of Louisville (UL) General Receipts Bonds, 2016 Series A; General Receipts Refunding Bonds, 2016 Series B; and General Receipts Refunding Bonds, 2016 Series C, priced March 3 and closed April 5, 2016. Bond proceeds were used to finance the renovation and expansion of the UL Student Activities Center; current refund outstanding UL Consolidated Educational Buildings Revenue Bonds, 2005 Series P; advance refund the UL General Receipts Bonds, 2007 and 2008 Series A; and pay associated costs of issuance. The all-in true interest cost ranged between 2.2 percent and 2.8 percent. The Series B Bonds generated a net present savings of $1.8 million, or 7.47 percent. The Series C Bonds generated a net present savings of $3.1 million, or 6 percent. No action was required.
The next item was for Turnpike Authority of Kentucky (TAK) Economic Development Road Revenue Refunding Bonds Revitalization projects, 2016 Series A, which priced March 22, and closed April 7, 2016. Bond proceeds were used to advance refunds TAK’s Economic Development Road Revenue Bonds, 2008 Series A and 2009 Series A for economic savings and pay the costs of issuance. The all-in true interest cost is 2.455 percent. The net present value savings for the refunded bonds was $20,455,075, or 8.699 percent. No action was required.
New School Bond Issues with School Facilities Construction Commission Debt Service Participation
Ms. Williams, reported there were 27 school district bond issues with SFCC debt service participation. Ten (10) bond issues will finance school renovations and have a par of $103,293,000. The remaining 17 will refinance previous bond issues and with a net present savings combined for a total of $2.8 million dollars. There were no local tax increases associated with these projects.
Representative Harris made a motion to approve the SFCC bond issues, seconded by Senator McDaniel. The motion passed by roll call vote of 6 yeas, 0 nays.
New School Bond Issues with 100 Percent Locally Funded Debt Service Participation
Mr. Nacey said that seven local school bond issues were reported to the committee. Five of these bond issues had 100 percent local debt service support and involved no SFCC participation. Two of these bond issues were paid from General Funds and are projected to generate enough savings to pay the pre-determined percentage of bond payments. No tax increases were required for these issues. No action was required on these items.
Mr. Nacey said that the updated debt issuance calendar was included in the members’ folders.
With there being no further business, the meeting was adjourned at 1:59 p.m. The next meeting will be June 21, 2016 at 1:00 p.m. in Capitol Annex Room 169.