Dakota County board adopts bond plan to fund Lebanon Hills maintenance facility and library renovations

The Dakota County Board of Commissioners voted to adopt a bond capital improvement plan on Jan. 7 that would fund construction of the Lebanon Hills maintenance facility and renovations at the Wentworth and Burnhaven libraries.

Deputy Finance Director Lang Vang presented the draft bond plan and said the project fund deposit — the amount available to pay project costs — is approximately $36,600,000 and that, after issuance costs and capitalized interest are added, the total bond sizing would be about $38,200,000. Vang said the bonds were structured over 17 years at an assumed 4.18% and would generate an estimated principal-and-interest payment of about $3.3 million and a roughly 2% impact to the 2026 levy.

The board held a public hearing with no public comments, then returned to commissioners for questions. Commissioner Hoberg pressed staff to provide the total principal-and-interest cost to taxpayers; staff replied the full principal-and-interest estimate is $52,480,810. Commissioner Atkins asked about market competitiveness and whether issuance fees could be driven down; Dan, the county’s bond counsel, explained underwriter discount is set by competitive bids on the day of sale and described capitalized interest as a structural choice that affects near-term levies rather than “cost of issuance.” He also said the county could receive a premium on sale that could be applied to issuance costs or project deposits.

The board then voted on the resolution to adopt the bond CIP and call for a bond sale. The motion carried 6–1; Commissioner Hoberg voted no. The county staff outlined a tentative calendar: a 30-day referendum period ending Feb. 6, a call for sale on Feb. 11, award of the sale March 11, and closing on March 25 if the process proceeds as scheduled.

Action on this item is subject to the county’s formal sale and pricing process and final bond structure on the day of sale.