Atchison posts ordinance authorizing 2026-A general obligation bonds

Atchison moved another step into debt financing on Thursday when it posted Ordinance 6729, the formal measure authorizing General Obligation Bonds, Series 2026-A. The filing matters because general obligation bonds are backed by the city’s taxing authority, which means the cost of repayment can land in future budgets and on local taxpayers.

The Kansas Register said Atchison had already signaled its intent to seek a private placement for the bonds, with the maximum aggregate principal amount capped at $2 million. That notice said the sale still depended on a bond purchase agreement and the later passage of an ordinance and resolution authorizing the issue, putting the city’s latest filing squarely inside the legal process needed to borrow.

The city has not publicly spelled out the full project list in the ordinance excerpt posted to its website, but Atchison’s own debt outlook shows the kind of work bond financing has covered before. The city says bonded debt has helped pay for street and other infrastructure improvements, including a water plant upgrade. The city also said it carried $15,531,340 in KDHE loan balances for water and sewer projects, underscoring how much of its capital work is tied to utilities and basic infrastructure.

That backdrop makes the borrowing question a taxpayer issue, not just a paperwork issue. Atchison says Kansas law limits its net outstanding bonded debt to 30% of assessed valuation. The city’s debt outlook put its current statutory debt limit at $19,704,400, with $7,605,000 in net outstanding bonds at the beginning of the year, leaving a legal debt margin of $12,099,400. The city also says its Moody’s bond rating is A1, an upper-medium grade that affects how cheaply it can borrow.

The timing also intersects with the city’s 2026 budget. City materials say staff held five budget workshops with department heads, and the proposed mill levy was 46.358, or 1.493 mills above the Revenue Neutral Rate. The city said that budget would raise property-tax revenue by 2.5% from 2025 to 2026, a reminder that debt service can compete with other priorities when commissioners decide how to pay for roads, utilities and equipment.

Residents can already see one likely pressure point in the city’s capital schedule. Atchison had bids open for a 2026 City Streets Improvements, Mill and Overlay project from April 24 through May 12, a sign that street work is moving forward alongside the bond action. With 4,300 water customers relying on city services and past borrowing already tied to the Brookdale subdivision and other infrastructure, Ordinance 6729 is another test of how much Atchison wants to borrow now and how much it is willing to carry later.