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Benton County concurs with HRA bond sale to finance new government center
Summary
The Housing and Redevelopment Authority sold $22,085,000 in lease revenue bonds (series 2025A) to finance a new county government center; the county board concurred and adopted post-issuance compliance policies. Staff reported a true interest cost of 4.45% and roughly $591,834 lower projected debt service vs. earlier estimates.
The Benton County Housing and Redevelopment Authority and county board approved financing steps on lease revenue bonds to help pay for a new Benton County government center.
Jessica (HRA staff) told the HRA that a competitive sale produced final par proceeds of $22,085,000 for series 2025A, with a final true interest cost of 4.45%—about 18 basis points lower than the estimate of 4.63%—reducing projected principal-and-interest costs by approximately $591,834 if the bonds remain outstanding for the full term. She said the structure runs 20 years with a first call date of Feb. 1, 2033, and reiterated the bonds are lease revenue secured by lease payments from the county to the HRA, not a county general-obligation pledge.
The HRA adopted a post-issuance compliance policy drafted by bond counsel to ensure proceeds are used for the intended project and that material events and continuing disclosure obligations are met. After the HRA vote, the county board reconvened and voted to concur with the HRA sale, authorized execution of the ground lease and lease agreements and adopted corresponding post-issuance compliance procedures.
Monty (bond advisor) summarized the competitive bid process: RW Baird and a syndicate won the award; Fidelity and RBC bid at higher yields. Jessica said receiving premium allowed the par amount to be sized where investors provided cash up front in exchange for higher coupons, which lowered the county’s yield on a true interest cost basis.
The county will make lease payments to the HRA from revenues available for debt service; board members noted the AA- rating on these bonds reflects the absence of a general-obligation pledge rather than a change in the county’s underlying credit. The motions to adopt the HRA bond resolution, the county concurrence resolution, and the post-issuance compliance policy each passed by voice vote.
What’s next: The executed documents will be filed and posted per the county’s disclosure procedures; the county will incorporate the new lease payments into future budget planning and follow the compliance steps outlined by bond counsel.
