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Commissioners weigh USDA loan features against local bond and bank options
Summary
Commissioners discussed USDA loan advantages (rate cap, no prepayment penalty, 30-year term) and compared them to local interim revenue bonds and local bank financing; they authorized parallel pursuit to keep options open.
Commissioners said they will pursue both the USDA loan process and local financing options in parallel so the county can choose the best long-term arrangement.
Commissioner Tom Ryan reported discussing the project with local lenders and said Big Horn Federal representative John Coyne suggested the county could sell its own revenue bonds to keep financing local and possibly obtain cheaper terms. County Attorney Jill Logan and the board noted USDA rules require interim financing and a nationally recognized bond attorney. Commissioners agreed to pursue both avenues and to return to the board with firm terms once bids and underwriting information are available.
Commissioners also cautioned that federal projects can reduce the bidder pool and add roughly 30% in design and bidding costs. County Clerk Becky Kersten emphasized that some USDA features — like the lack of a prepayment penalty and a rate cap of 4.625% as presented to the board — make the USDA option attractive, but underwriting and final bids will determine the best course.
