Kansas Turnpike's long-term plan would ramp up bond sales

Adobe Stock

The Kansas Turnpike Authority intends to use revenue bonds to finance a portion of its recently announced, nearly $500 million long-term investment plan, a spokesperson for the agency said on Friday. 

"Our preliminary projections indicate a potential issuance of approximately $240 (million) to $250 million par value, tentatively targeted for July 2027 with an anticipated 25-year term," Jeri Biehler, the authority's marketing and communications director, said in an email. "Final structuring decisions will be decided over the next six months, as we are currently in the initial phases of a traffic and revenue study."

The investment plan announced Aug. 13 is aimed at preserving, modernizing, and strengthening the 236-mile toll road that opened in 1956. Projects include expanding capacity, improving interchanges and system connectivity, enhancing driver amenities, and advancing technology. 

"Our responsibility is to preserve what works, modernize where needed and prepare the system for future demands," Turnpike Authority Chief Executive Officer Steve Hewitt said in a statement. "This investment plan allows us to continue delivering the safe, reliable experience customers expect while positioning the turnpike for the next generation of travelers."

In conjunction with the plan, the authority approved its first toll increase since 2022 — a three-year annual toll hike of 3% for passenger vehicles and 4% for commercial vehicles effective Sept. 1, according to the statement.

The turnpike last sold bonds in 2020 with a $50.25 million revenue bond refunding issue rated Aa2 by Moody's Ratings and AA-minus by S&P Global Ratings. The ratings remain unchanged and both assign stable outlooks to the credit.

The authority's latest annual audit showed it had $79.2 million of revenue bonds outstanding at the end of fiscal 2025.