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Bond-market briefing flags higher rates; county asks municipal advisor to model highway bond options
Summary
Finance representatives from D.A. Davidson told Lincoln County commissioners that municipal bond rates are higher than earlier in the year and offered to model highway allocation bond and lease-purchase scenarios to help the county plan for budget uncertainty tied to ARPA and potential statutory changes.
Paul Grieger and Andy Forney of D.A. Davidson briefed the Lincoln County Board of Commissioners on current municipal-market conditions and offered technical support, including modeling higher‑education financing options and lease‑purchase scenarios.
Grieger said markets are volatile and interest rates are higher than in recent low-rate years. For a 10‑year, high‑investment‑grade general‑obligation financing he estimated yields in the mid‑ to high‑3 percent range (roughly 3.6–3.8 percent if the county issued a taxable‑equivalent deal today). He said the firm has worked with the county on road financings and refinancings and can run models and provide options.
Discussion with commissioners focused on budget uncertainty tied to changes in how ARPA funds and other items may be treated under state budget rules; county clerks and staff flagged that final legislative outcomes could not be known until the legislative session concluded. Commissioner and clerk comments urged a proactive approach. Becky (county staff) asked the advisers to prepare models specifically for highway-allocation‑fund pledge bonds and lease‑purchase options to help the county plan under a range of budget scenarios.
Grieger responded that D.A. Davidson will work with county staff to prepare hypothetical financings and cost models and report back in coming weeks. Commissioners indicated support for modeling prior to formal financing decisions.
Ending: Commissioners encouraged staff to proceed with financial modeling and said they would consider bond options as part of a broader pre‑budget analysis once advisors return with scenarios.
