Commissioners debate $2 million bonding option, sinking fund as county sets Sept. 22 budget hearing

The Lincoln County Board of Commissioners set a public hearing for the proposed fiscal year 2025–26 county budget for 11 a.m. on Sept. 22, 2025, and held an extended budget work session on Sept. 2 to address a projected gap in the county’s budget authority and options for funding road projects and short-term cash needs.

County staff and several commissioners discussed a reported budget authority shortfall of roughly $1.3 million in the current draft and examined alternatives including straight transfers, use of inheritance and other reserves, and issuing a bond (board members discussed a $2 million illustrative example). Commissioners also discussed establishing a sinking fund to cover operating cash-flow gaps and recommended targets for a reserve built over time.

Highway Superintendent Jason Schultz briefed the board on near-term road work — including a 72-inch culvert installation on Platte Valley Parkway and an asphalt resurfacing project on North Brady Road — and said contractors would be on site within days. Board and staff spoke about the roads department’s budget request, which was described in meeting materials as a substantial increase compared with prior years; one packet line in the record references a roads resurfacing figure on the order of $1.6 million, and the board noted an original roads packet figure of $1.879 million.

Commissioners favored pursuing bonding as a way to preserve the county’s tax request authority while funding larger capital projects. The board discussed common bonding practices: issuing bonds to create an upfront pot of funds and then budgeting annual principal-and-interest repayments from the road or bond repayment fund. The county’s financial staff noted the first-year payment on a new bond can be interest-only and that the schedule and payment amounts should be projected before finalizing a bond decision. Several commissioners said they would invite a municipal bond adviser (DA Davidson was referenced) to present options, schedules and repayment scenarios at a follow-up meeting.

Board members emphasized the need for a sinking fund to cover several months of operating capital, observing that county tax receipts are concentrated later in the fiscal year and that steady reserves reduce cash-flow pressure. Commissioners asked department heads to justify budget increases, and they agreed to invite several department leaders to the next meeting for further review — the minutes and staff noted planned follow-ups with the sheriff’s office, roads, and other departments. County staff said some departments had already submitted reductions, while others had limited ability to cut because payroll is the major cost driver.

The board motion to set the public hearing for Sept. 22 at 11 a.m. passed by roll call vote. Commissioners also recessed briefly into a closed session earlier in the meeting to discuss the county’s long-term investments; the record shows the closed session was convened at 10:04 a.m. and that specified staff remained in the room. No final bonding decision was taken on Sept. 2 — commissioners set a path to solicit bond-adviser information, tighten department requests, and pursue a sinking-fund resolution so the board could evaluate concrete scenarios ahead of budget adoption.