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Skagit County approves resolution to issue up to $42 million in refunding bonds
Summary
Skagit County commissioners voted to authorize limited tax general obligation refunding bonds for up to $42 million to refinance 2014 bonds; staff and consultants said the plan aims for at least 1.5% net present value savings and caps true interest cost at 4%.
Tricia Loeb, Skagit County budget and finance staff, introduced a resolution authorizing the issuance of limited tax general obligation refunding bonds to refinance bonds issued in 2014. Tricia Loeb said the county executed a contract with Foster Garvey to serve as bond counsel and that Stacy Amasaki of Foster Garvey prepared the resolution presented to the board.
Stacy Amasaki, a principal at Foster Garvey, told commissioners the resolution would authorize refunding bonds with a not‑to‑exceed principal of $42,000,000, no interest rate higher than 5.5%, and a true interest cost cap of 4%. She said final maturity would be no later than Dec. 1, 2041, and that bond pricing would be expected between 98% and 130% of par. "No rate of interest can exceed 5.5%. The true interest cost of the bonds cannot exceed 4%," Amasaki said.
Commissioners asked about market timing and process. Matt from PFM, the county’s financial adviser, said marketing typically runs one to two weeks and that a competitive sale would use sealed bids at a set time. "One to two weeks generally will give enough time for [investors] to review the preliminary official statement and make their investment decision," he said, adding that bids often arrive immediately before the deadline.
Commissioners discussed potential savings. The board noted earlier estimates of roughly $1 million in savings had moved around with market changes; staff said recent calculations had ranged from about $500,000 to $800,000 in projected savings and that the resolution’s delegation authority would allow staff to proceed when market conditions met the resolution’s parameters.
Commissioner Burns moved to approve the resolution as presented; Commissioner Browning seconded. On a voice vote the motion carried.
The resolution delegates limited authority to the county administrator or the budget and finance director to execute the refunding within the stated parameters and includes a repeal of the prior delegation resolution (R2024‑273) to avoid overlap.
The county will publish a preliminary official statement to potential investors and proceed to market when staff and the financial adviser recommend it does so under the resolution’s limits.
