Bond sale to help 911 center make ends meet

Interest in the Aug. 2 bond sale by Flathead County to raise additional revenue for the 911 center is high, the county’s finance director told county commissioners.

“I think because of the small issuance, we may get a lot of interest in this sale,” Finance Director Sandy Carlson said. “We’ve had calls from individuals, banks and investment companies about the sale.”

The county intends to sell $800,000 in bonds at 10:30 a.m. Aug. 2, during a commission meeting.

Proceeds from the bond sale are earmarked to boost the 911 center’s capital account and its cash flow fund, Carlson said.

The county will make two bond payments a year, on Jan. 1 and July 1, for 17 years to pay off the bonds. Principal and interest are due in the January payment and the July payment is an interest-only payment, Carlson said.

Those due dates match up with the original bond payments for the center. In 2009, the county sold $6.1 million of bonds to pay for construction of the new 911 center. In November 2008, county voters had approved a $6.9 million bond issue. But the former 911 director recommended the county sell only $6.1 million of bonds and save the taxpayers the additional $800,000.

In the year the new center has been open, it’s become apparent to county and 911 officials that the additional $800,000 is needed to adequately fund the center. To cover costs this past year, the county shuffled $1.2 million that had been set aside for capital expenses and a cash reserve to instead pay for equipment needed at the center.

Flathead County taxpayers will pay an additional $70,000 a year in taxes to cover the upcoming bond issue, Carlson said.

U.S. Bank is the bond registrar for the sale. That bank also handled that task for the original bond sale.

The county actually will collect $770,000 in tax revenue with $30,000 from the sale directed to cover the costs for the bond attorney, financial consultant, printing fees and underwriting costs.

The consolidated 911 center is funded by the county and the three incorporated municipalities in Flathead County — Kalispell, Whitefish and Columbia Falls.

Reporter Shelley Ridenour may be reached at 758-4439 or sridenour@dailyinterlake.com.