OTC approves $11.7 million to cover highway improvements

By Tom Hintgen

Otter Tail County Correspondent

County commissioners, on Nov. 28, approved a bonding transaction of $11.7 million to cover county highway improvements for the years 2024 and 2025. About 34 percent of revenues from the county half cent sales tax can go towards bond repayments, over a 20-year period, with an interest rate of 3.8 percent.

Otter Tail County received $5.2 million from the half-cent sales tax in 2022.

An advisor to the county, Nick Anhut of Roseville-based Ehlers and Associates, told county board members that the favorable rate of 3.8 percent came about because of Otter Tail County’s AA rating from Standard and Poor’s, a rating agency that ranks the credit-worthiness of borrowers.

“This good news is a reflection of the stable economy in Otter Tail County,” Anhut said. “Your county is also strong financially with the county keeping its financial house in order.”

The five county commissioners agreed that a few months ago, when the decision was made for the bonding transaction for roadway maintenance, a rate of four percent or above would be acceptable.

Ehlers and Associates received 11 bids for the municipal bonding transaction for Otter Tail County. 

“We were most pleased when hearing of the rate of 3.8 percent,” said county board chairman Wayne Johnson. The other four commissioners concurred with Johnson.

Otter Tail County is larger in size than the state of Rhode Island and paved roads total 1,062 miles. This keeps the county highway department very busy. It is often mention that the backbone of the highway system in Otter Tail County requires lots of financial investment.

County roadway funding comes from county taxpayers through the annual levy, $20 license tab fees and the half cent sales tax in Otter Tail County. Additional road money comes from the state and federal government which has been limited in recent years.