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County schedules TEFRA hearing for university refunding bonds
Summary
Lincoln County commissioners set a TEFRA public hearing for Dec. 23 after bond counsel described a proposed 501(c)(3) refunding in which the county would act as conduit issuer to preserve the issuer's tax‑exempt status. No liability is intended for the county; the board approved setting the hearing by roll call.
Lincoln County commissioners voted Dec. 2 to set a TEFRA public hearing for Dec. 23 on a proposed refunding of bonds issued for a 501(c)(3) entity affiliated with a local university. Auditor Sherry Lynn introduced Todd Meyer Henry, bond counsel, who told the board federal rules require a governmental entity to act as conduit issuer for certain 501(c)(3) financings and described the refunding as a reissuance to preserve tax‑exempt status.
Meyer Henry said conduit issuance does not make the county liable for the debt and will not count against the county’s constitutional debt limit; rating agencies typically treat such conduit debt as separate. Staff advised the board that documents and public notices were drafted and that the hearing would satisfy federal TEFRA notice requirements under the revised law (publication once or posting on the county website).
Commissioner Otten moved and Commissioner Schmidt seconded a motion to set the time and place for the TEFRA hearing at the board’s Dec. 23 evening meeting beginning at 6:30 p.m. The motion passed on a roll call vote. The hearing will give members of the public an opportunity to comment on the proposed conduit issuance and refunding plan.
Next steps: the county will publish the notice and post hearing materials on its website ahead of the Dec. 23 hearing.
