County Hopes For Bond Market Help
A shaky bond market offers La Crosse County WI a risky but rewarding shot at $19.5 million to pay for a jail expansion project, according to County Administrator Steve O’Malley.
“For the last few months, the (national municipal bond market) has been so volatile,” he said. “But since Jan. 1, it’s clear the market has recovered somewhat, and we could take advantage of lower interest rates. “There’s no guarantee, but it looks like the time to go to the market is right now.”
O’Malley will share with the La Crosse County Board on Thursday his plan for the $19.5 million left to be paid on the $29.5 million La Crosse County Law Enforcement Center expansion project. He said he wants to invest that balance in a 20-year bond next month. While some board members welcome a reduced interest rate on the project’s debt, their enthusiasm is tempered by memories of a dangerous bond market. “I don’t think it hurts to explore what’s happening, but it’s not something we each feel comfortable with,” said Vicki Burke, a county supervisor and chairwoman of the county’s Law Enforcement Center Construction Committee. “This is the kind of thing you want to know is a secure investment.”
But County Supervisor Tom Rauk said while it’s good to air concerns, the county should not squander an opportunity. “The issue with the remaining money was always going to be: When’s the right time to invest?” he said. “If (O’Malley) says it’s starting to look attractive right now, well, we left it in his hands. He’s been pretty damn sincere about this, and we’re anxious to reduce costs.”