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Board approves $1.2 million general‑obligation loan notes to fund CIP projects, including elevator work
Summary
Supervisors authorized issuance of $1.2 million in general obligation capital loan notes (Series 2026A) to reimburse fiscal‑year CIP expenditures, with the loan expected to close in early June and an approximate interest rate of 4.85%.
The Woodbury County Board voted unanimously to adopt a resolution authorizing issuance of $1.2 million in general‑obligation capital loan notes (Series 2026A) to finance or reimburse CIP projects including demolition, road and building work and a portion of the courthouse elevator replacement.
Ryan Erickson (board administration) said the issuance will reimburse projects already underway and is expected to close around June 4; he described the transaction as a short‑term debt instrument (the board discussed a four‑year term used for levy calculations) and noted that current market conditions have raised borrowing costs compared with previous years. "Five years ago we were borrowing at 1 percent or even less," Erickson said; "now we're paying nearly 5 percent," a change supervisors said is driving efforts to reduce interest costs.
Tina (finance) described adjustments to payment timing and interim payments as tools to reduce net interest expense, including taking payments in December and June to better match tax‑collection cycles and exploring interim paydowns where permitted. The resolution and related tax‑levy provisions passed 5‑0.
Supervisors asked staff to continue exploring ways to shorten or eliminate recurring borrowing cycles for CIP items and to report back with options to reduce interest costs.
