Commissioners issue millions in bonds, bond anticipation notes for water, sewer, & road projects

The Lorain County Board of Commissioners on Friday voted to issue millions of dollars in bonds and bond anticipation notes, and then to consolidate them which will save taxpayer money on transaction fees.

County Fiscal Director KC Saunders told the board that the bonds and notes are for infrastructure projects.

They are projects for which the county borrowed money, that are now "either at the point of completion or we're confident no further funds are going to be needed," he said.

The county later this year or early in 2026 will start paying the debts out of the proceeds of tax increment financing agreements from which it receives payments, or from water usage fees it is paid, Saunders said.

As long as the bond anticipation notes remain notes, the county only makes the interest payments.

The $16,570,000 in bonds and projects involved are:

• $6,740,000 in sanitary sewer improvements for the Emerald sewer project in Columbia Township;

• $6,630,000 for phase I of the Sandstone Ridge project in Amherst Township;

• $1,170,000 for water system improvements on North Ridge Road in Sheffield Township;

• $1.6 million for water system improvements on Broadway in Sheffield Township;

• $430,000 for water system improvements on Grove Avenue in Sheffield Township.

The board then voted to consolidate all five of those bond issues. Issuing them in single bond transaction saves thousands of dollars in transaction fees, according to county officials.

Also, the board issued $13,740,000 in bond anticipation notes. Covering four projects, it:

• authorized $6,470,000 in bond anticipation notes for phase II of the Sandstone Ridge project. They will pay the cost of completing Sandstone Parkway to state Route 58 in Amherst Township, which is about 2,900 linear feet of new county highway including storm sewers, waterlines and sanitary sewers together.

• authorized $3,260,000 in bond anticipation notes for the Route 82 sewer extension. That project involves installing approximately 5,100 linear feet of 12-inch diameter sanitary sewer lines along the north side of Royalton Road/Route 82 from Boone Road in Columbia Township to the western Strongsville city limits. The work also involves including manholes, sewer laterals and future connections to South Boone Road and the proposed Del Web Community there.

• authorized $2,120,000 in bond anticipation notes for the South Boone Road sewer project, which will install sewers along an approximately 0.67-mile section of Boone Road south from the intersection with Royalton Road/Route 82 in Columbia Township. That work includes private connections to residential properties, roadway pavement repair, driveway repair and restoration.

• authorized $1,620,000 in bond anticipation notes for sewer improvements on Lake Avenue in Elyria Township, where approximately 2,600 linear feet of 8-inch diameter sanitary sewer line, manholes and laterals will be installed.

The board also voted to consolidate all four of those bond anticipation notes, again to save transaction fees. Saunders said that means the county will pay for one just one bond rating and one closing cost, not numerous ones.

A bond anticipation note is a short-term financial security issued ahead of a larger bond in the future. Governments use them to raise money for infrastructure and building projects, and they are repaid with bonds.