Story County board names Luana Savings Bank lender for $4 million conservation bonds

The Story County Board of Supervisors voted Dec. 2 to award Luana Savings Bank as the lender for a $4,000,000 series of general obligation conservation bonds and adopted a resolution authorizing the issuance.

Piper Sandler placement agent Travis Squires told the board the bidding produced multiple competitive offers from national and local banks. "We saw a really nice group of national banks show up to submit proposals," Squires said, and recommended the Luana Savings Bank proposal for its combination of a low all‑in true interest cost (TIC) and a flexible call feature.

Squires explained that some large banks submitted both callable and non‑callable options. JPMorgan Chase submitted a non‑call option with the lowest headline rate but required non‑callable bonds to access that rate; JPMorgan’s callable alternative included a 2027 call date at about a 4.23% rate. By contrast, Luana Savings Bank offered a call feature exercisable with 30 days’ notice and a roughly 3.6% rate, producing a TIC comparable to JPMorgan’s all‑in TIC. Squires also noted purchaser or counsel fees—such as a $67,500 purchaser’s counsel fee included in one national bid—are reflected in the all‑in TIC and reduce net proceeds.

The board and Squires confirmed the county is treating this as the first issuance under a previously approved $25,000,000 conservation bond authorization from last November; the current action assumes a $4,000,000 borrowing for conservation projects. "If you want $4,000,000 net to spend, we can certainly do that as well," Squires said, adding that net spending after legal costs on the current structure was about $3,933,000.

Speaker 3 moved to award Luana Savings Bank as the general obligation bond lender on the placement agent’s advice; the motion was seconded and approved by roll call (Basil, Merkin, Heddens voting 'Aye'). The board then moved to adopt the resolution authorizing the issuance, identified in the meeting as Resolution 26‑18, for the $4,000,000 series; that motion also passed by roll call with the same recorded votes.

Squires said staff will attach a debt service schedule and final terms to the resolution and noted the county retains authority to issue additional series in future rounds as projects and timing require. He also offered a fee discount to the county because of the delayed timeline on Piper Sandler’s side.

The board completed remaining routine business and adjourned.

What’s next: County staff will finalize and attach the debt service schedule and legal documents as part of closing paperwork for the $4,000,000 issuance; future bond series under the November authorization may follow as projects are ready.