The county board of commissioners, on April 9, approved the issuance of $12.89 million in bonds to cover highway projects for the summer of 2019.
The low bid of 2.62 percent came from Raymond James and Associates, to be paid off within 17 years. The money will come from the county-wide half cent sales tax devoted to road and bridge maintenance.
"We as a county have an AA rating that is due to our low amount of current debt and sound fiscal management," said County Board Chairman Doug Huebsch of Perham. "Basically, Otter Tail County is seen as a good risk, making our bonds desirable to investors."
The county board also approved close to $2 million for a new county public works garage to be located in Pelican Rapids.
Securing the combined total of $14.24 million series 2019 A bonds, according to Ehlers financial advisor Nick Anhut, "is Otter Tail County's full faith and credit pledge which benefits from a dedicated property tax levy."
ADVERTISEMENT
Otter Tail County does not have additional debt planned in the next two years.
"The stable outlook reflects our view that Otter Tail County will likely maintain very strong budgetary flexibility and liquidity," Anhut said. "The local economy will be able to provide a stable tax to support operations."
Otter Tail County is larger in size than the state of Rhode Island and paved roads total 1,062 miles.
"The backbone of our highway system in Otter Tail County requires lots of financial investment," County Engineer Chuck Grotte said.
"County residents who have attended public meetings in previous months have expressed their desire for their roadways to be maintained at the highest level. They also support the half-cent sales tax in order to accomplish this goal."
Reviewing the series 2019 A bonds at the county board meeting with Anhut on April 9 was County Auditor-Treasurer Wayne Stein.
