Finney County approves $87.5 million sales‑tax bonds to finance law enforcement center and jail

The Finney County Board of County Commissioners on Feb. 17 approved a bond resolution authorizing the issuance of up to $87,500,000 in general obligation sales‑tax bonds (series 2026A) to finance improvements and renovations to the county’s law enforcement center and jail. The bonds are secured by a voter‑approved countywide retail sales tax dedicated to the project and by the county’s full faith and credit.

Derek Ramos, County Administrator, said the action completes the final required step to proceed to closing, anticipated in early March 2026, and allows the county to access bond proceeds to meet project cash‑flow needs. ‘‘Approval of the bond resolution represents the final required action by the Board to complete the bond issuance process,’’ Ramos said.

Brett Shogren of Stifel Public Finance told the commission the offering drew strong investor interest: more than $630,000,000 in orders for an $87,500,000 issue, an oversubscription that lowered yields and improved pricing. Moody’s reaffirmed the county’s AA3 category rating for the issuance, and the underwriter secured bond insurance from Build America Mutual to enhance marketability.

Shogren said the sale generated premium that the county is keeping as a project contingency. The deal summary shows roughly $4,942,007.27 in premium deposited as contingency before reinvestment interest; Shogren also estimated the true interest cost for the financing at about 4.083 percent. He said bond proceeds will be deposited at closing and may earn reinvestment interest until spent on the multi‑year project.

Commissioners asked whether the first interest payment is covered; Shogren said the county capitalized the first year’s interest within the borrowing so initial debt service can be covered until sales‑tax receipts begin flowing in April. The county treasurer and Stifel will present reinvestment options for the proceeds and may solicit local banks alongside Stifel to secure a portfolio of short‑term investments.

The board voted unanimously to adopt the bond resolution. County staff said no general‑fund impact is anticipated because debt service is expected to be paid from the dedicated sales‑tax revenue stream. The county’s sales‑tax oversight board and fiscal controls will monitor receipts and expenditures under the voter‑approved framework.

Next steps: county officials anticipate closing in early March 2026, reinvesting proceeds until encumbered for project costs, and keeping the sales‑tax reserve and oversight processes in place as the project proceeds.