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Hubbard County authorizes presale work for up to $3M bond issuance for government center improvements
Summary
Financial advisor Ehlers presented a presale plan estimating roughly $2.2 million in bonds; the board approved a resolution authorizing continued preparation and calling the sale not to exceed $3 million.
The Hubbard County Board of Commissioners approved a presale resolution authorizing staff and financial advisors to proceed toward a bond sale to fund identified county improvements, with a not-to-exceed issuance cap of $3 million.
Bruce Kimball of Ehlers presented the presale report and financing plan Tuesday, Jan. 21. Kimball said favorable construction bids reduced the county’s estimated required bond amount to about $2.1 million for project costs and about $2.215 million after issuance costs, and that the proposed bonds would carry a 15-year term. He added the county’s S&P rating of AA- should support market interest.
Kimball told commissioners the plan used conservative interest-rate assumptions and estimated annual debt service at about $200,000; better market rates at sale could reduce that number. He described a 10-year call feature (first call date proposed Feb. 1, 2035) and noted flexibility for partial or full prepayment thereafter.
Commissioner discussion stressed a preference for a 15-year term and earlier repayment to limit long-term debt. The board moved and approved the resolution to authorize continued pre-sale work and to call for the sale in early March; the motion passed by voice vote. The resolution authorizes staff to proceed with the steps required to issue the bonds, but does not obligate the county to sell bonds at the authorized cap.
Ehlers and county staff said the next steps include finalizing the official statement, seeking competitive bids on the sale date, and confirming details with S&P and underwriters prior to issuance.
