County to use bond proceeds first; cash set aside for Smith Valley Road will remain until bond spend‑down

County staff and the highway supervisor told council the county plans to use bond proceeds first for the capital projects outlined in the bond package and to use cash reserves later for projects such as the remaining phases of Smith Valley Road.

Luke Masten, county highway supervisor, said the county previously designated about $12 million in the general fund and $14.5 million in the EDIT fund for Smith Valley Road. With the bond planned to fund a broader set of projects, staff advised the council to spend bond proceeds first and hold the cash in reserve until the bond is partially spent, which will likely push some Smith Valley expenditures later in the schedule. Staff said they will likely zero out the Smith Valley line item on the general fund and create a debt‑service estimate line item at second reading to reflect the expected bond payments in 2026.

Councilors asked about callable terms and the ability to prepay bonds if interest rates fall; staff said the bond is expected to be callable after eight years and will seek confirmation from the county’s financial advisor on partial prepayment options. Council approved the general approach and asked staff to return with precise debt‑service estimates for second reading.