Seward County commissioners voted to adopt a bond-sale resolution on a unanimous voice vote that authorizes offering for sale up to $6,105,000 in general-obligation bonds to pay for Road and Bridge projects.

The resolution authorizes the county to publish a preliminary official statement, seek an underlying credit rating from S&P Global and accept bids on Feb. 3, 2025, at 10 a.m.; if the schedule holds, the bonds would close on Feb. 26, 2025, and the county would receive the net proceeds to fund the project.

Why it matters: The bond proceeds will finance planned Road and Bridge work and require the county to budget for future debt service. Commissioners and staff discussed how sale premiums, call protection and expected debt service will affect future budgets and possible use of a proposed sales tax as an alternate repayment source.

Brett Shogren, municipal advisor with Stifel, told commissioners the county’s financing team has drafted a preliminary official statement and will submit the issue and the county’s financials to S&P Global for an underlying credit rating. Shogren said Seward County previously received a double A-minus rating in 2021 when refinancing hospital-related bonds and that the county expects a similar rating for this issue.

Shogren also described the sale mechanics: bids will be opened on a parity bidding website, potential bidders will receive the preliminary official statement and the county’s recent audits about two weeks before sale, and the commission would be asked to award the bonds that evening to the bidder offering the lowest true interest cost.

Commission discussion addressed the maximum issue size and how premium proceeds are handled. Commissioners were told the legal maximum is approximately $6,105,000 and that sale premiums—when bidders price coupons higher than yield—can produce cash to the county. Shogren said issuers typically reduce the par amount to offset premium and recommended the county downsize the issue if a premium is realized.

County staff explained the roughly $105,000 above the $6,000,000 project estimate is to cover issuance costs, including the S&P Global rating fee, bond counsel, financial advisory fees, printing, CUSIP numbers, attorney general transcript review and paying-agent fees. Shogren confirmed typical call protection for such issues is seven to eight years and that the county planned an Aug. 1, 2032 call date in the draft structure.

Commissioners discussed repayment sources. Staff said the county currently transfers about $1,000,000 annually into road repair and improvement funds and that debt service would likely be paid from those transfers or a Road and Bridge repair fund. Commissioners also noted a half-percent local sales tax, if voter-approved, could raise about $2,000,000 annually and shorten the payoff period substantially.

The commission approved the bond-sale resolution by motion of Commissioner Abbott with a second from Commissioner Ford; the formal roll call returned five votes in favor.

Looking ahead: With the resolution adopted the county will move forward with rating, marketing and final sale steps on the schedule provided by the county’s municipal advisor and bond counsel.