Daniels County approves conduit bond hearing for hospital project; stresses no county liability

Commissioners on March 16 voted to adopt Resolution 2026-7, authorizing a public hearing on April 6 to consider issuing conduit industrial development bonds on behalf of Daniel's Memorial Health Care Center.

Nathan Billu presented the measure and told the commission the county would act only as a conduit issuer and would “not incur any pecuniary liability or charge on its general credit.” He said the resolution cites Montana law (Title 90-5-103) that requires a clear statement on the face of such bonds that they are limited-obligation instruments and do not pledge county taxing power. Billu said the financing being contemplated is roughly $32 million now, with authorization capped at $35 million to allow for adjustments as bids are received.

The resolution calls a final public hearing on April 6; if the bond issue proceeds, the hospital would enter a loan agreement at closing and assume payment and other obligations tied to construction and operation. Billu emphasized the documents include indemnities and other protections for the county and individual officials.

Commissioners voted in favor of the resolution; no permits, zoning approvals or other county approvals for construction were included in the vote. The approval authorizes the procedural steps to solicit public comment and complete statutory notice requirements. The county attorney and bond counsel will handle closing documents and ensure the county’s limited role is recorded in the bond documents.

The next scheduled step is the April 6 public hearing, at which commissioners and the public will review final bond terms and hear comment.