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Blue Earth County board raises potential bond cap to $30 million for future projects
Summary
After discussion about long-term capital needs and levy uncertainty, commissioners approved a spending resolution increasing the not-to-exceed bond authorization from $20 million to $30 million as a placeholder for future borrowing.
Blue Earth County commissioners voted March 25 to increase a spending-resolution cap for potential future bonds from $20 million to $30 million, a non-binding "marker" to preserve reimbursement and reimbursement-period rights if borrowing is later pursued.
Lisa (county finance staff) presented the spending-resolution practice and said the county typically approves a spending resolution to enable a 60-day look-back for reimbursements and an 18-month forward reimbursement period once bonds are placed. Commissioners discussed projected project costs, which county staff said are estimated at $40 million for a proposed building project; staff advised that the board could not lawfully set the spending resolution to the full $40 million at this time because not all expenditures had yet been incurred or documented for the 60-day look-back.
Commissioners debated whether $20 million was sufficient and discussed levy risk and the unpredictability of future board decisions on levies. Several commissioners said increasing the cap to $30 million would provide more flexibility without committing to issue debt. One commissioner noted that two existing bonds will roll off, which could allow a larger bond without increasing the levy for some years.
Commissioner Patty moved to increase the cap to $30 million; a second was recorded. The motion passed by voice vote after brief discussion, with the chair calling for the ayes and declaring the motion carried.
Ending: The spending-resolution cap was increased to $30 million; the resolution does not obligate the county to issue debt and staff will continue to track costs and levy projections.
