Minnehaha County authorizes up to $25 million in certificates of participation to fund facility projects

The Minnehaha County Commission voted 5-0 on Aug. 25 to authorize Resolution MC20-59, permitting the county to issue Certificates of Participation (Limited Tax General Obligation) in an aggregate principal amount not to exceed $25,000,000 to finance multiple facility projects.

Commission Administrative Officer Carol Muller told commissioners the financing would cover replacement and upgrades including the county highway facility, renovation of the county administration and extension buildings, and chiller replacement. The resolution caps the equivalent bond yield at 3.5% and contemplates a first issuance of approximately $10,000,000 on or near Oct. 27, 2020, with a later second issuance sized once project costs are clearer. Underwriter Colliers Securities LLC is named in the documents, with a stated fee of $6.50 per $1,000 of certificates.

The documents authorized include a New Supplemental Trust, one or more New Amendments to Lease and related Official Statements. Perkins Coie LLP was identified to prepare bond counsel documents. The resolution directs the county auditor and deputy state's attorney to finalize and execute related closing documents. The resolution also requires the county to include lease payments in future budgets and to comply with tax and arbitrage rules under the Internal Revenue Code.

The motion to authorize the Chair to sign the resolution and the underwriter agreement passed by roll call: 5 ayes. The resolution will become effective after the required publication period under South Dakota law.

The action authorizes the county to proceed with preparing and marketing the certificates but does not itself finalize interest rates, final series sizing beyond the $25 million aggregate cap, or the precise timing of the second issuance.