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State Highway Commission approves bond issuance to help fund US‑275 expressway
Summary
On Dec. 6, 2024 the Nebraska State Highway Commission approved a resolution authorizing issuance of highway improvement revenue bonds under the Nebraska Highway Bond Act to finance completion of the US Highway 275 expressway corridor; the vote authorizes signing an indenture of trust and an agreement limiting future NDOT DCPCs.
The Nebraska State Highway Commission voted on Dec. 6, 2024 to approve a resolution authorizing the issuance of highway improvement revenue bonds under the Nebraska Highway Bond Act to help complete the US Highway 275 Expressway corridor from Norfolk to West Point.
Commissioners authorized the chair and the Department of Transportation to sign an indenture of trust with the bond trustee and approved an agreement addressing future NDOT discretionary construction payment certificates (DCPCs). NDOT advisers said the documents are intended to provide clarity to rating agencies and future bondholders and prioritize debt‑service payments over additional DCPCs.
The presentation to the commission summarized the statutory limits that will govern the issuance: total principal for all bonds under the act cannot exceed $450,000,000; annual debt service payments cannot exceed $35,000,000; no bonds may be issued after June 30, 2029; and all bonds must be paid in full by June 30, 2042. The resolution also directs internal accounting steps to segregate State Highway Capital Improvement Fund revenues for debt service and provides direction to the state treasurer for payments required by statute (including section 39‑22‑15.02 as cited in the department’s packet).
NDOT’s working group and external advisers said they will finalize materials for a competitive sale early next year, including a preliminary official statement and notice of sale, and will finalize the indenture of trust with Union Bank & Trust as bond trustee. The commission previously authorized Union Bank & Trust to serve as trustee during an earlier meeting.
The motion to approve the resolution was made and seconded on the record and commissioners expressed affirmative votes; the clerk recorded the approval and the chair thanked NDOT staff for their multi‑year work to bring the financing forward.
What happens next: NDOT and its advisers will complete financing documents and move toward a competitive sale early in the coming year. The commission’s approval authorizes execution of the approved documents and a formal sale process consistent with the Nebraska Highway Bond Act and the departmental agreements adopted today.
