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Commissioners approve lease-purchase to finance building heating and cooling upgrades totaling $2.81 million
Summary
The board adopted a resolution authorizing a lease-purchase agreement to finance HVAC upgrades across county facilities; Stifel structured a wraparound arrangement with Bank of America to preserve the county’s earlier low-rate financing.
The Finney County Board of County Commissioners adopted Resolution 22-2025 to authorize a lease-purchase agreement financing approximately $2,810,000 for upgrades to heating and cooling systems in four county buildings.
Interim County Administrator Gary Meager summarized the project background: Integrated Consulting Engineers (ICE) recommended HVAC improvements to extend life and efficiency for the administration building, the county attorney building, the courthouse and the library. Following design work and contractor bids, the county had previously authorized a lease-purchase resolution; refined costs after bidding reduced the project estimate to $2,810,000 from an earlier $3.1 million estimate.
Brett Shogren, financial adviser with Stifel, outlined the financing structure. The county previously placed a 2017 energy-efficiency lease purchase at about 2.58% interest. Because the earlier lease pledges the original equipment, a straightforward subordinate lease would be difficult or expensive. Stifel negotiated a private-placement “wrap” with Bank of America: Bank of America will purchase the new subordinate lease at a competitive rate of 4.226%, and the structure levels payments across the old and new leases with only five additional years added to the overall term. The blended interest rate across both financings was presented as 3.376%.
Shogren said the private-placement approach reduces issuance costs and avoids public-bond market fees. The resolution, prepared by bond counsel Gilmore & Bell and reviewed by county counsel and administration, authorizes the county to enter the lease-purchase financing and execute related documents. The commission approved the resolution by roll call; the clerk recorded “aye” votes and the resolution was signed by commissioners present.
County officials said documents will be finalized for closing, targeted in September, and proceeds will be used to purchase, equip and install the HVAC improvements. No litigation or competing financing options were recorded in the meeting. Commissioners directed staff to finalize documents and to coordinate project pre-construction meetings.
