Council reviews plan to issue bonds backed by major bridge fund

County Council members heard a presentation on a proposed bond ordinance that would finance bridge projects using proceeds secured primarily by the county's major bridge fund.

A presenter for the county said the package would be on parity with the county's other bonds and that the council would return next month to consider formal adoption; an appropriation ordinance tied to the bond proceeds was introduced for consideration.

"Right now, we ran market rates as of yesterday, and it came out around $3.91," said Landon, a Baird advisor, adding that his firm's guidance showed a range of about 3.75% to 4.25% in current market conditions. He cautioned that developments in global markets could push rates higher or lower.

Oscar Gutierrez, a municipal adviser with Boundary Consulting, told the council the bridge fund is narrow in purpose: "the bridge fund is very restrictive that you can only use it for bridges, and we are running out of ways to use that fund." He said changes in the local income tax distribution will allow the county to capture roughly 90 cents on the dollar of additional local income tax share, which he estimated could translate to about $1.8'$2.1 million coming back to the county until legislative changes take effect in 2028. Gutierrez added that the county's pro forma debt-service coverage with the new issue would be about 1.67 times, and said the county would be well covered so long as no other major bridge projects are added through 2032.

Council members asked whether the issuance would significantly reduce the county's remaining bonding capacity; advisers said the levy structure and fund restrictions mean the debt is tied to a specific revenue stream rather than a general debt service levy.

The council introduced an appropriating ordinance in the record (labeled CC05-06-2026-B) tied to the proposal and will take final action next month; no adoption vote occurred at this meeting.