Supervisors approve firm to underwrite bonds, finance new communications building

The Washington County Board of Supervisors unanimously passed a resolution to enter into an agreement with Northland Securities of Minneapolis to have that firm underwrite the issuance of general obligation and equipment bonds to finance the county's new communications building.

The action came at the supervisors' regular meeting held Tuesday, July 23. Supervisors voting for the measure included Jack Seward, Abe Miller, Stan Stoops and Richard Young (via phone). Supervisor Bob Yoder was absent.

The total amount of the bonds to be issued is $8,002,954.90. Of that total, $7,880,000 will be placed in a construction fund for the project while the remainder reflects the cost of issuing the bonds. The interest rate on the bonds is projected to be 2.39 percent, including all fees involved in the purchase of the bonds.

'That's a pretty remarkable interest rate when you consider that the federal funds rate now is 2.5 percent,” said Michael Hart of Northland Securities. The bonds will mature in 2030 but could be paid off early any time after June of 2026 if market conditions are favorable.

In October 2018, the supervisors approved a bond of $3.5 million to begin the process. Supervisor Seward said the county was authorized to spend up to $10.5 million on equipment for the project but spent only $8.1 million. He said the county was authorized to spend up to $3.5 million on the building but spent only $3.4 million.

Supervisors Seward and Miller thanked Hart for his guidance and help on the project.