Originally published in the 9/29/17 print edition of Yellowstone County News.
BILLINGS — Good news for county taxpayers!
The bond sale to finance the addition to the Yellowstone County Detention Facility (YCDF) was much better for county taxpayers than even best expectations.
On Tuesday, County Commissioners approved a $9.7 million general obligation bond sale at 2.24 percent interest over 20 years to Robert W. Baird & Co., Milwaukee, Wisconsin. Their bid was one of nine — far more bids than expected — and the rate of interest offered by Baird was considerably lower than the conservative 3.75 percent originally estimated by County Director of Finance Kevan Bryan, in preparing the bond proposal for consideration by voters.
But, even more, the rate was also lower than the most likely 2.75 percent rate that the county’s advisors, Springstead, said they should expect. Springstead, a public sector financial consulting firm, also said that the county should expect only four to six bidders. The stiff competition of nine bidders generated the lower interest rate.
“It was a surprise,” said Bryan, “They paid a premium to get this bond.”
The interest of so many firms wanting to get the loan results from the fact that Yellowstone County is such a good credit risk. Standard & Poor recently gave the county a AA+ rating, the highest possible and the highest of any government entity in the state, said Bryan.