Flathead County Bond Issue Summary for the Jail Project
$95,000,000 Series 2026 Bonds – April 14, 2026
AA+ S&P Rating Upgrade
As part of the Bond financing process, the County received an upgrade to its underlying credit rating from S&P Global from "AA" to "AA+" on sustained financial strength and an expanding economy. The S&P rating report indicates the rating is due to County's:
- Strong management with well-established practices supporting its prolonged financial stability,
- Strong financial performance, and
- Overall low debt burden.
2026 Bond Offering
On April 14, the 2026 Bonds were offered in $5,000 increments and sold through D.A. Davidson to individual investors, banks, and other institutional investors locally and across Montana and the nation. Demand for the 2026 Bonds was strong with approximately 50 institutional investors together with additional individual investors participating in the offering. Yields to investors ranged from 2.41% in 2027 to 4.05% in the final maturity in 2046.
Lower True Interest Cost
County officials are pleased that the true interest cost rate on the 2026 Bonds is favorable at 3.83%, which is 0.50% lower than the 4.33% projected rate used for the taxpayer impact estimates at the time of the Bond election. For comparison, if the entire $105,000,000 of approved Bonds was issued at current rates, the County would have total savings of $1.1 million due to lower interest costs.
Positive Taxpayer Impact Information
Mill levies to pay debt service on the 2026 Bonds will commence in 2026/27 and conclude after the 20-year term. Tax impacts for the Bonds were projected during the election process at $11.13 per year per $100,000 of assessed property value and the projected 2026/27 amount is $9.98 based on current 2025/26 taxable values. As the County continues to experience tax base growth from new construction and other changes, the annual mills to pay debt service would move lower each year throughout the terms of the Bonds (all other factors equal).
Bond Issuance Schedule
On April 21, the Board of County Commissioners will adopt the final Bond Resolution for the issuance of $95,000,000 in General Obligation Bonds that voters approved on November 4 in the total amount of $105,000,000. Closing of the 2026 Bonds will occur on April 30.
After issuance of the 2026 Bonds, the County will have remaining unissued bond authorization of up to $10,000,000 that can be issued pending budget considerations for the jail project once final costs are known. If needed, the remaining authorized Bonds could be issued in 2027 or 2028.