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Stearns County gets favorable bond pricing for Justice Center; sale reduces borrowing and long‑term debt cost
Summary
The county sold bonds for the Justice Center to Bank of America Securities at a low bid near 4.18%; due to the sale premium and improved pricing the county reduced the principal amount by about $3.7 million and expects roughly $24.5 million less in principal‑and‑interest over the life of the debt compared with earlier estimates.
Stearns County officials reported a successful bond sale on April 20 for the Justice Center project and the board accepted the sale at its April 21 meeting.
Finance director Sarah Uch said the county recently completed an S&P rating review and maintained a AA+ rating, which, combined with strong market interest, produced favorable results on sale day. Municipal adviser Dan Tinter of Ellers & Associates said the county received six competitive bids; the winning bid was Bank of America Securities (New York) with a true interest cost near 4.18%.
Tinter said the strong pricing, combined with a sale premium, allowed the county to reduce the principal amount approximately $3.7 million compared with earlier estimates. He estimated the reduction in total principal and interest over the life of the bonds at roughly $24.5 million versus prior projections, and that improved cash flows make it possible the bonds may be paid off earlier than previously modeled.
The board voted to accept the sale and the associated post‑sale compliance documents. Commissioners congratulated finance staff and the advisers for securing competitive terms.
What happens next: The county will complete closing procedures, monitor sales‑tax receipts used for debt service and proceed with project cash‑flow management tied to the Justice Center construction.
