Sarpy County authorizes up to $200 million in bonds for road projects

The Sarpy County Board of Commissioners on June 2 authorized the issuance and sale of limited tax highway allocation fund pledge bonds with a maximum principal amount not to exceed $200 million to pay for county road improvements.

Chief Financial Officer Dan Helus told commissioners the resolution creates flexibility to size the final offering to match needs and market conditions, and that the county will sell the bonds through an open competitive bidding process. “This resolution today establishes a maximum borrowing authority of $200 million,” Helus said, adding that debt repayment would be spread over a 20‑year period to balance affordability and long‑term planning.

Helus said the bonds would be secured by dedicating up to 100% of highway allocation tax revenues for repayment and that “no new tax increase is required to support this financing.” He outlined a timeline that includes a mid‑July bond‑rating call, Aug. 12 pricing and a Sept. 2 closing.

Suzanne Gerlock, the county’s financial advisor at PFM, explained structural features intended to lower long‑term costs: the bonds include a 10‑year call provision that would allow the county to refund the issue if market rates fall. “A 10‑year call is what we put on the bonds…within 90 days of that 10‑year call date, you can refund with new bonds for a lower interest rate,” Gerlock said.

Officials said the county sized the authorization conservatively against highway allocation revenue projections; Helus said current projections put the likely issuance around $197 million but that final size will depend on market conditions. Commissioners asked questions about the paying agent relationship with Union Bank & Trust and about how retiring existing debt over time will free capacity for future issuances.

Commissioners voted to approve the resolution. The measure passed by voice vote after a motion from Commissioner Warren and a second from Commissioner Mixon. The county plans to proceed with the competitive sale process and return with final details after bids are evaluated.