Woodbury County approves loan notes to fund demolition, elevator upgrades and park work; selects Security National Bank at 4.45%

The Woodbury County Board of Supervisors on Feb. 24 adopted resolutions authorizing several general obligation capital loan notes to finance county capital projects, and accepted a proposal to issue $1,200,000 of taxable general obligation capital loan notes, series 2026 A. All votes on the loan-authority and proposal-acceptance items were recorded by voice as 4-0 in favor.

Ryan Erickson (board administration) said the county grouped three borrowing needs into separate hearings because the projects are funded and recorded as distinct issuances even though the combined borrowing total is $1.2 million. He described the items as funding the demolition of the old jail, elevator and technology improvements (including at the county facility referenced as WCICC), and the Little Sioux Road Park project.

Treasurer Tina Bertrand said staff solicited bids from local banks; Security National Bank submitted the lowest bid, and after discussions with bond counsel and other bankers the county elected to proceed with a non-bank-qualified structure at an interest rate of 4.45% to avoid legislative risk that could limit bank-qualified borrowing in the coming fiscal year. "We're not earning enough money on interest if we're paying it out in interest. Let's get it paid down and save on the interest expense that we're incurring," Bertrand said when explaining a decision to schedule an additional principal payment in December as well as June.

Board discussion referenced a legislative proposal in Iowa that staff said could change the threshold for bank-qualified notes; to reduce exposure the county chose a non-bank-qualified note even though that yielded a slightly higher rate than an initially quoted bank-qualified bid. Erickson said the $1.2 million package uses a four-year term to reduce the county's reliance on five-year borrowing cycles.

Why it matters: the borrowing will fund immediate capital improvements the county identified as priorities in fiscal 2026 (jail demolition, elevator and technical upgrades, and Little Sioux Road Park). Staff also adjusted principal-payment timing to reduce overall interest expense and protect cash-flow timing tied to debt-service levy receipts.

Actions recorded in this meeting include multiple public hearings and subsequent resolutions to institute proceedings and accept purchase proposals; all were approved by voice vote, 4-0. The board directed staff to finalize financing documents and proceed with the issuances as authorized.