Brief (1)
SB 592, as amended, authorizes the Kansas Development Finance Authority (KDFA) to issue bonds on behalf of the Adjutant General for the acquisition, construction, equipping, furnishing, renovation, reconstruction, and repair of armories statewide. Expenditures authorized for these capital improvement projects shall not exceed an aggregate total of $22,000,000. The bonds authorized would be limited to the following amounts each year upon approval of the State Finance Council:
| Phases of Issuance | |
| Year | Amount |
| FY 2001 | $2,000,000 |
| FY 2002 | $2,000,000 |
| FY 2003 | $6,000,000 |
| FY 2004 | $6,000,000 |
| FY 2005 | $6,000,000 |
Additionally, the Adjutant General is required to pursue local, state, federal, and private funds to offset the amount of bonds issued to finance capital improvements for the armories. The Adjutant General shall report to the State Finance Council (during or following a legislative session) regarding the projects undertaken and no bonds will be issued without approval by the State Finance Council.
Background
The Adjutant General did not include funding for capital improvements within its FY 2001 operating budget request. The agency, however, seeks the authority to issue five series of 15-year bonds, issued in five consecutive years, beginning in July 2000, to provide a total of $22,000,000 (including interest, the total amounts to $34,000,000) to cover costs associated with rehabilitation, repair, and upgrade of the state's armories. The agency estimates that $18.9 million would be spent on the general repair of the 58 statewide armories, with the remaining $3.1 million financing architectural and engineering fees and the management of the project. The Adjutant General reports the financing of the debt service for the bonds would be as follows:
| Financing | ||
| Year | Re-payment | Method |
| FY 2001 | $0 | |
| FY 2002 | $351,000 | From existing resources |
| FY 2003 | $778,000 | From existing resources and
possible federal funds |
| FY 2004 though
FY 2019 |
Average SGF payment $2.1 million or
approximately $1.7 million with federal match | |
The agency cannot estimate the amount of federal funds that may be available to offset State General Fund dollars used to finance the payment of the bonds. However, the agency reports that if the current trends continue, federal funds would be available for projects costs which would reduce the amount of the next bond issuance. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html