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Commission approves $2 million limited GO bond for search and rescue facility
Summary
Gallatin County commissioners approved a $2,000,000 limited general obligation bond to finance remodeling and expansion of the county’s search and rescue facility; the county will repay the debt from budgeted debt service and voter-approved search and rescue mills.
The Gallatin County Commission on April 8 adopted a resolution to issue a $2,000,000 limited general obligation bond to fund remodeling and expansion of the county’s search and rescue facility.
The bond is structured as a limited general obligation issue, which the county said meets three conditions: debt service is already covered in the current county budget; the principal does not exceed $2,000,000; and total county indebtedness after issuance remains below the 2.5% statutory cap on assessed value. County bond counsel Nathan Bilyeu summarized those conditions in the public hearing, and Bridget Ekstrom (DA Davidson, private placement agent) said Stockman Bank submitted the most favorable bid with a 4.45% rate over 15 years.
Why it matters: Gallatin County’s search and rescue volunteers respond to high-risk incidents across the region—swift-water, mountain and winter rescues—and commissioners said the facility upgrade will support training, equipment storage and operations. Officials also said using voter-approved search and rescue mills will cover the debt service over time.
Details and discussion: Bond counsel said the county already has funds budgeted for the debt service, so the bond will not require new taxes. Bridget Ekstrom reported that regional banks bid and Stockman Bank offered a competitive proposal; CFO Justin Sontin publicly thanked Stockman Bank for stepping up on past smaller issuances. Commissioners described the financing as part of a larger capital stack to accelerate a project while contractors are available and to avoid cost escalation.
Public comment: None of the public commenters opposed the bond during the hearing. The commission voted to approve the resolution and authorized the county CFO to sign the loan-purchase agreement and proceed to close by the end of the month.
Next steps: The county will close the private placement sale, draw bond proceeds for the remodel/expansion and record the debt service in future county budgets according to the covenants in the resolution.
