Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Transportation Finance topic
No spam. Unsubscribe anytime.
Washington County authorizes $150 million bonds to accelerate MSTIP transportation projects
Summary
The Board authorized issuance of up to $150 million in full‑faith‑and‑credit bonds to finance Major Street Transportation Improvement Program (MSTIP) projects, approving a timeline and consultants for bond counsel and financial advisory services.
The Washington County Board of Commissioners unanimously authorized the chief financial officer on April 15 to issue up to $150 million in bonds to finance Major Street Transportation Improvement Program (MSTIP) projects the board approved in April 2024.
Why it matters: Commissioners said accelerating bond financing will allow the county to deliver backlog MSTIP projects sooner than a pay‑as‑you‑go approach, while taking advantage of relatively lower interest rates compared with recent years.
What the board approved
Assistant County Administrator Anne Ober and interim Chief Financial Officer John Steyer outlined the financing structure and schedule. The authorization covers full‑faith‑and‑credit bonds (not a voter‑approved measure) and includes use of specialized advisors and bond counsel. Steyer told the board the county is working with bond counsel Hawkins Delafield & Wood and financial advisors to prepare offering documents and rating presentations.
Timing and constraints
Staff described a near‑term timeline: rating agency presentations scheduled in May and publication of a draft disclosure document for board review mid‑May. Steyer said bond legal constraints include a requirement to spend approximately 80% of proceeds within the first three years of the bond issuance. The presentation discussed options for repayment terms — staff said they were evaluating 15‑, 18‑ and 20‑year structures and considered 15 years to be feasible within current revenue projections.
Board discussion and rationale
Commissioners highlighted two reasons for supporting the bond: (1) honoring prior commitments to partner cities and completing backlog MSTIP projects that have been delayed by inflation and rising construction costs, and (2) securing financing now ahead of federal changes (discussed by a commissioner) that could raise borrowing costs if tax treatment of municipal bonds changes.
Commissioner remarks
“I think in an environment where construction costs and inflationary pressures are significant and we can borrow money at a much lower rate than in those environments, that’s the right step,” one commissioner said during discussion. Another commissioner noted the bond will allow the county to move forward on previously approved projects in urban growth boundary expansion areas and to catch up on deferred transportation work.
Formal action
The board voted unanimously to authorize the county’s chief financial officer to issue debt for MSTIP projects. The motion passed by a 5–0 vote.
Ending
County staff said they will return to the board with final disclosure documents and closing details. County finance staff also flagged a broader revenue discussion: the board will consider multiple revenue options and capital funding approaches at an upcoming meeting to align transportation needs with other deferred capital priorities.
