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Beltrami County board approves $35.73 million bond issuance for jail project
Summary
The county approved a general obligation bond resolution authorizing up to $35,730,000 for a jail project after discussion about increasing the amount to $37 million; administrator outlined five financial 'backstops' supporting the recommended issuance.
The Beltrami County Board voted to adopt a bond authorizing resolution to issue $35,730,000 in general obligation jail bonds, series 2026A, to finance a county jail project.
Commissioner Carlson moved adoption of the resolution and to authorize staff to sign necessary program agreements. Commissioner Winger seconded the motion. Commissioner Gould expressed concern that the board might be "selling ourselves short" and suggested increasing the authorization to $37 million to give the project more contingency.
Administrator Barry outlined five financial "backstops" meant to reduce risk: (1) an expected current annual revenue surplus of roughly $250,000, (2) a set-aside of $1.2 million in a reserve, (3) anticipated interest earnings on bond proceeds (estimated between $750,000 and $1,200,000 depending on investment), (4) expected growth in tax revenues that would help cover fixed bond costs over time, and (5) availability of general fund operating reserves. He argued the combination of those measures and current sales tax performance support the recommended issuance level.
After discussion the board called for the question and approved the bond issuance by a 4-1 vote.
County staff will proceed with the bond closing steps and execution of any related program agreements authorized by the resolution.
