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From YouTube: Capital Projects and Bond Oversight Committee (8-23-23)
Description
00:33 Roll Call
00:57 Approval of Minutes
01:16 Information Items
02:03 Project Report from Finance and Administration Cabinet
09:16 Lease Report from Finance and Administration Cabinet
12:55 Report from OFM – Ky Infrastructure Authority
19:20 Cabinet for Economic Development – EDF Fund Grants
24:16 OFM – Ky Housing Corp Debt Overview
26:12 OFM – New Debt Issues & SFCC Debt Issues
32:19 Adjournment
A
A
A
A
E
Ma'am
good
afternoon,
chair
Fraser,
Gordon
and
other
members
of
the
committee,
my
name
is
Kevin
Cardwell
Deputy
state
budget
director,
as
the
chair
mentioned,
I've,
got
two
projects
today.
The
first
one
I'll
start
with
is
the
tourism
Arts
and
Heritage
cabinet
with
the
horse
Park
commission.
This
is
a
barn
repair,
upgrade
appropriation
increase
to
the
project.
The
increase
amount
is
two
hundred
and
fifteen
thousand
dollars.
E
This
comes
from
unbudgeted
restricted
funds
within
the
horsepark
commission,
the
original
appropriation
was
authorized
in
the
2022-24
budget
act
for
10
million
dollars
of
general
fund,
so
there's
215
000
increase
brings
the
total
to
10
million
215
000.
due
to
time
constraints
relating
to
the
events
and
activities
at
the
horse.
Park,
the
division
of
engineering
and
contract
Administration
decided
to
build
a
traditional
steel
structured
building
rather
than
a
pre-engineered
metal
building
structure.
E
This
will
cut
approximately
six
weeks
off
the
construction
time
that,
coupled
with
an
unanticipated
extension
of
tent
rentals
into
the
beginning
of
the
next
season,
led
to
the
need
for
the
appropriation
increase.
The
authorization
for
this
increase
is
present
pursuant
to
40
KRS
45
760,
subparagraph
6,
and
we
respectfully
request
approval
of
the
committee.
Thank
you.
F
A
E
You
the
second
project
today,
is
with
the
Department
of
Veterans
Affairs
and
it's
related
to
the
Radcliffe
Veterans
Center
building.
This
is
an
emergency
repair,
maintenance
and
replacement.
The
total
projects
will
be
6
million,
12
thousand
dollars
pursuant
to
KRS
45
750
1G
and
krs-45
780
Secretary
of
the
finance
and
administration
cabinet
approved
additional
funds
in
the
amount
of
a
million
twelve
thousand
dollars
from
the
emergency
repair
maintenance
and
replacement
account
for
this
project.
Project
budget
initially
was
five
million
dollars.
It
was
reported
to
this
Committee
in
June
of
22.
E
increase
is
going
to
bring
the
total
project
up,
as
I
previously
stated,
to
6
million
twelve
thousand
dollars,
and
this
will
provide
funding
for
the
lowest
of
the
construction
bids
that
were
received.
This
project
includes
replacement
of
the
roof
and
siding
and
repairs
to
the
gutters
soffits,
retaining
walls,
fence
posts,
concrete
sealing
and
other
related
issues.
G
G
E
H
H
Latent
defects
within
some
of
the
materials
that
were
used,
but
they
have
they're,
not
a
warrantied
item.
So
while
some
of
the
Roof
Systems
have
some
warranty
remaining
the
remote,
the
majority
of
the
systems
that
have
failed
have
failed
are
under
any
type
of
warranty,
they've
completed
their
building
warranties.
F
H
Else
it's
primary
inflationary
due
to
the
the
particular
materials
that
are
part
of
this
have
seen
probably
a
higher
rate
of
inflation
than
most
building
materials
and
all
construction
materials
have
seen
you
know
pretty
huge
inflation
as
I'm
sure
we're
you're
all
are
seeing
quite
often
than
we
are
as
well,
but
but
being
Roof
Systems,
it's
been
even
more.
So
all
right.
Thank.
F
B
A
I
I
The
agency
currently
leases
44
spaces
in
a
parking
facility
operated
by
the
parking
authority
of
the
River
City
at
a
rental
rate
of
ninety
five
dollars
per
space
per
month
or
50
160
annually,
her
KRS
56805.
This
lease
is
being
modified
for
the
addition
of
40
parking
spaces
at
a
rental
rate
of
106
dollars
per
space
per
month
or
50
880
annually.
The
total
cost
of
the
lease
increases
to
one
hundred
and
one
thousand
forty
dollars
annually
effective
September,
1st
2023
and
the
modification
is
being
presented
to
the
committee
pursuant
to
KRS
56823.
A
A
I
So
the
facility
that
is
currently
being
leased
did
have
parking,
but
Corrections
prefers
to
park
in
this
particular
parking
structure
because
of
the
security
and
credit
access.
So
that's
that's
why
this
these
additional
spaces
are
being
sold
and
I
can
get
you
that
information
I,
don't
have
the
expiration
of
that
lease
right
in
front
of
me,
but
I
can
get
that
for
you
all.
If
you
wish.
I
A
F
A
Okay,
action
item
number:
six:
we
will
be
hearing
from
Sandy
Williams
remotely.
This
will
be
two
loans
and
a
cleaner
water
program.
Grant
reallocation
do
I,
have
a
motion,
a
second
to
roll
them
into
one
roll
call
vote
motion
by
Senator
Howell
second
by
senator
gerdler
and
Miss
Williams.
You
may
begin.
J
Chair
Fraser
Gordon
and
members
of
the
committee
I'm
Sandy
Williams
executive
director
with
the
Kentucky
infrastructure
authority
pursuant
to
krs-224a100,
the
authority
will
present
two
loans
and
one
grant
for
the
committee's
review.
First
step
out
of
our
fund
a
program.
Our
clean
water,
State
revolving
fund,
Louisville
and
Jefferson
County
metropolitan
sewer
districts
fund,
a
loan
in
the
amount
of
1
million
118
600
for
the
Paddy's
run
flood
pumping
station
and
capacity
improvements
project.
J
The
existing
Pump
Station
was
designed
by
the
U.S
Army
Corps
of
Engineers
and
put
into
service
in
1953,
and
it
will
be
the
commissioned
the
new
pump
station.
Well,
the
the
actual
Pump
Station
routinely
pumps
combined
sewer
overflows
during
wet
weather
events
when
the
river
is
elevated
further,
protecting
the
public
and
many
critical
assets
within
msd's
sewer
system.
In
addition
to
providing
critical
flood
protection,
the
paddies
Run
pump
station
serves
as
an
essential
Wastewater
infrastructure
for
Combined
sewer
overflow
control
and
is
a
required
project
in
msd's
federal
consent
decree.
J
The
loan
is
being
funded
under
the
bipartisan
infrastructure
laws.
New
emerging
containments
funding
through
the
Clean
Water
State
revolving
fund
Loan
program
and
will
receive
100
principal
forgiveness
as
required
by
federal
law.
The
loan
was
approved
at
the
August
3rd
Kaa
board
meeting
next
up
out
of
our
fund.
B
infrastructure
revolving
fund,
the
city
of
Bowling
Greens
fund
B
loan
in
the
amount
of
eight
million
616
thousand
dollars,
is
for
construction
of
the
Bowling
Green
Municipal
Utilities
North
Industrial,
Park
Force
main
project.
J
J
This
will
be
a
20-year
loan
with
a
0.5
percent
interest
rate
and
was
approved
at
the
August
3rd
Ka
board
meeting
and
last
but
not
least,
we
do
have
one
reallocation
request
from
the
City
of
Springfield.
This
was
a
cleaner
water
program,
Grant
and
out
of
round
two
of
that
was
appropriate
and
has
been
one
of
the
22
regular
session,
and
we
reckon
recommend
the
projects
and
request
the
committee's
approval.
K
K
J
K
Awesome,
thank
you,
and
the
other
question
I
have
is
with
the
changes
that
are
going
to
be
made
to
this
project.
Is
it
going
to
assist
and
help
with
some
of
the
the
smells
and
the
odor
that
oftentimes
comes
out
of
the
rubber
town
area?
Do
you
know
if
that's
what
this
is
going
to
be
attempting
to
fix
or
fixing.
J
If
so,
the
pump
station
would
control
flooding
in
the
area,
and
so,
if
they're,
if
there's
flooding
in
the
area,
if
the
smells
are
called
by
caused
by
flooding,
then
I
would
see
that
it
would
help.
I
am
not
an
engineer
and
I'm,
probably
not
the
best
person
to
to
ask
that
I'm
question
of.
Unfortunately,
okay.
A
A
A
M
Thank
you,
I'm
Katie,
Smith,
deputy
secretary
at
the
cabinet
for
economic
development
and
we're
proud
to
bring
five
more
projects
for
our
Kentucky
product
development
initiative.
These
are
still
under
round
one
yes
round
two
has
started
and
the
independent
consultant
is
reviewing
and
scoring
all
of
those
projects
applications
right
now,
so
these
are
still
under
round.
One
just
didn't
want
to
cause
any
confusion
so.
L
Have
at
it
thank
you
hi
again:
I'm
Kylie
Palmer.
First,
we
have
the
city
of
Somerset
on
behalf
of
Somerset
Pulaski
Economic
Development
Authority
was
approved
by
kedfa
for
a
one
million
580
662
dollar
kpdi
EDF
Grant
project
to
perform
due
diligence,
infrastructure,
extensions
site,
preparation
and
Road
improvements
to
attract
industry
at
the
Commerce
Park
in
Somerset.
Matching
funds
are
provided
through
a
local
Grant
and
total
potential.
Investment
for
this
project
is
11
832
527
dollars.
L
Next
project
is
the
Bracken
County
Fiscal
Court
on
behalf
of
the
Augusta
Brooksville
Bracken
County
Industrial
Development
Authority
was
approved
for
a
project
with
a
potential
investment
of
408
326
dollars.
This
project
is
seeking
to
improve
water
lines
on
the
property
within
the
Bracken
County
Industrial
Park
matching
funds
are
provided
through
local
Ida
funds,
and
the
project
was
approved
by
cadfa
for
a
204
163
kpdi
EDF
Grant.
L
Third,
we
have
Fleming
County
Fiscal
Court
on
behalf
of
the
Flemingsburg
Fleming
County
Industrial
Development
Authority
was
approved
by
kedfa
for
a
366
570
kpdi
EDF
Grant.
The
project
is
to
assist
in
site
preparation
of
a
new
build,
ready
pad
and
Road
improvements
within
the
industrial
park
in
Flemingsburg
matching
funds
are
provided
through
a
combination
of
a
utility,
Grant
and
Ida
funds,
total
potential
investment
for
this
project,
733
140
dollars.
L
Next
Hopkins
County
Fiscal
Court
on
behalf
of
the
city
of
Madisonville,
was
approved
for
a
project
with
a
potential
investment
of
21
million,
seven
hundred
ninety
one
thousand
four
hundred
and
sixty
dollars.
This
project
is
seeking
to
transform
a
72-acre
property
on
Rose
Creek
Road
into
the
largest
shovel
ready
site
in
Hopkins
County
matching
funds
are
provided
through
municipal
bonds
and
the
city's
sewer
and
water
revenues
project
was
approved
by
ketva
for
a
one
million
one
hundred
four
thousand
thirteen
dollar
KPD
kpdi
EDF
Grant.
L
Lastly,
have
Menifee
County
Fiscal
Court
on
behalf
of
the
mmrc
regional
Industrial,
Development
Authority
was
approved
by
kedfa
for
a
148
578
kpdi
EDF
Grant
project
will
is
to
perform
infrastructure
improvements
to
attract
industry
at
the
John.
Well,
Stacy
mmrc
Regional
industrial
park
in
Moorhead.
This
is
a
regional
project
with
support
by
Menifee,
Morgan
and
Rowan
counties,
and
the
mmrc
regional
industrial
Authority
will
provide
the
matching
funds
total
potential
investment
for
this
project
is
four
hundred
and
four
thousand
eight
hundred
and
ten
dollars.
L
All
projects
were
identified
by
the
independent
site
selection
consultant
as
having
a
potential
for
future
Investments
or
locations
of
an
economic
project.
All
projects
were
recommended
by
secretary
null
and
a
concurrence
letter
was
signed
by
secretary
Johnson.
These
were
approved
by
our
ketva
board
on
July
27th
and
presented
to
state
property
and
buildings
Commission
on
August
17th.
A
A
N
Thank
you.
My
name
is
Tracy
Thurston
I'm,
the
senior
director
of
financial
management
at
Kentucky
housing
Corporation
today,
Kentucky
housing
Corporation
is
seeking
approval
for
an
issuance
of
single-family
mortgage
revenue
bonds.
That
Ryan
will
be
presenting
shortly,
typically
you'll
be
seeing
our
multi-family
conduit.
Bond
deals
come
through
here
for
approval,
so
this
is
a
bit
of
a
change
for
us.
Our
main
line
of
business
at
Kentucky
housing
Corporation
is
serving
first-time
home
buyers
through
low-rate
mortgages
and
down
payment
assistance.
N
Historically,
since
1973
we've
used
mortgage
revenue
bonds
and
the
bond
proceeds
to
fund
those
mortgages
up
until
about
2010
2011,
when
interest
rates
went
down,
and
that
was
no
longer
the
best
execution
to
fund
those
mortgages
over
the
last
decade,
or
so
we
have
pooled
our
loans
and
delivered
them
to
the
secondary
Market.
But
now,
with
Rising
interest
rates,
increased
housing
costs.
We
think
it
is
best
to
issue
mortgage
revenue
bonds
again
to
put
a
low
interest
rate
mortgage
product
on
the
market,
to
help
fund
and
potentially
underserved
or
unserved
homeowners.
N
For
some
context.
Since
1973
Kentucky
housing,
Corporation
has
issued
approximately
6
billion
of
single-family
mortgage
revenue
bonds
and
approximately
167
million
are
have
been
our
remained
outstanding,
as
of
June
30th.
So
I
just
wanted
to
fill
you
in
on
our
shift
in
in
how
we
are
funding
our
mortgage
production.
Yes,.
A
Ron
barrows
in
here
in
Parson
to
present
agenda
items
number
six
C2
and
D.
Two
new
debt
issues
as
well
as
school
district
issues
with
the
ffcc
participation,
require
an
action
to
have
a
motion
in
a
second
to
roll.
The
two
new
debt
issues
into
one
row
call
Bow.
We
have
a
motion
by
Senator
house
second
by
co-chair
girdler,
any
objections,
please
again
with
the
new
two
new
debt
issues
and
after
we
vote
on
those,
you
may
continue
with
the
sfcc
debt
issue.
Thank.
B
This
is
a
transaction
of
the
Kentucky
housing
Corporation
and
I'm,
not
a
state
transaction,
but
the
housing
Corporation
again
to
continue
that
that
side
of
the
mission,
the
underserved
and
unserved
single-family
origination
as
Tracy
said.
Historically,
this
has
been
a
structure
that
the
housing
corporations
use
to
generate
funds
for
that
purpose,
but
obviously,
with
low
interest
rates,
2011
was
the
last
time
the
housing
Corporation
did
it
in
this
method.
But
it's
been
done
repeatedly
prior
to
that.
B
Basically,
with
higher
rates
you
got
wider
spreads,
so
that
leads
to
the
economics
of
this
being
more
favorable
than
packaging.
The
assets
and
selling
them
in
the
secondary.
The
transaction
for
consideration
is
estimated
to
par
amount
of
97.77
million
dollars.
A
net
true
interest
cost
just
above
five
percent.
B
A
B
So
the
next
transaction
for
consideration
is
the
state
property
and
building
submission.
This
is
Project
128..
This
is
a
general
fund
transaction
and
the
way
the
Commonwealth
has
moved
to
the
funding
mechanism
for
projects.
Historically,
we
had
funded
a
bond
deal
for
these
various
projects
and
a
project
get
delayed
and
all
of
a
sudden,
we
have
Bond
proceeds
that
are
sitting
around
we
paid
interest
on
and
we
haven't
utilized
that
for
infrastructure.
B
So
the
new
method
is
to
fund
a
pool
of
assets,
a
pool
of
funds
through
a
transaction
and
then
to
allow
us
the
budget
office
to
take
funds
as
projects
proceed
through.
So
the
app
what's
labeled
exhibit
a
is
the
entire
comprehensive
list
of
projects
I
think
it
comes
from
about
10
different
budgets.
We
call
it
a
buoy
authorized,
but
on
issued
transactions
and
really
really
just
fun.
Cash
flow
needs
between
six
months
and
18
months.
B
For
that
basket
of
projects
now
obviously
see
the
general
assembly
can
remove
projects
or
add
projects
and
future
budgets,
but
that's
the
one
that
the
comprehensive
list
that
we're
working
off
of
now
the
next
transactions
contemplated
to
generate.
Currently,
the
packet
does
say:
200
million
in
Project
funds.
We've
downside
that,
for
various
reasons
to
about
150
million
to
kind
of
fund
that
various
budget
Bill
authorized
but
unissued
projects,
as
you
can
see,
there's
about
2.85
billion
of
a
buoy.
So
obviously
the
actual
transactions
you
know
are
substantially
smaller
than
what
is
authorized
to
be
utilized.
B
I
am
somewhat
excited
about
this
next
transaction,
because
now
we
have
two
ratings
upgrades.
We
had
the
Fitch
rating
in
May
and
the
s
p
rating
in
June,
which
obviously
translates
into
lower
cost
of
capital
for
the
state.
So
we
can
either
make
our
dollar
go
farther
or
we
have
lower
Debt
Service.
There's
information
about
the
financing
team,
but
we're
estimating
right
now
about
a
4.156
on
true
interest,
cost
happy
to
take
any
questions
on
the
transaction.
L
A
A
B
Thank
you.
The
last
item
for
consideration
today,
as
mentioned,
is
the
six
transactions
that
have
sfcc
state
level
participation
in
the
transaction.
Currently,
the
sfcc
is
just
under
10
percent,
with
the
balance
over
90
percent
being
supported,
The
Debt,
Service,
being
supported
by
by
local
resources.
There
is
no
tax
increase
necessary
to
fund
any
of
these
projects.
Happy
to
take
any
questions.