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Thursday, July 18, 2024

County board hears bonding options

With bond interest rates at historic lows, Cottonwood County may be inching closer to pursuing two major building projects.

At Tuesday’s special work session, Cottonwood County Commissioners reviewed options to potentially pursue a total of roughly $23 million in bonding — $15 million to construct a new public works shop and $8 million for major improvements to the Law Enforcement Center and the county jail.

George Eilertson from Northland Securities spoke to the board about its options when it comes to pursuing bonds.

The two projects would be bonded separately. And if the county contributes a down payment to get the bond on the public works project to $10 million, each bond could be bank qualified, resulting in a lower interest rate.

Eilertson added that the projects also could potentially qualify for the state’s credit enhancement program, which would boost the county’s credit rating and lower interest rates.

Eilertson said he had developed scenarios for the county to consider for either a 15-year or 20-year bond.

Eilertson added that the next steps for the county would be potentially developing their plans for the projects and plan public hearings.

More on this story appears in the Dec. 1 print edition of the Citizen.

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