Flathead County sells half of new jail bonds in 10 minutes

KALISPELL, MT — Flathead County raised $95 million through a bond sale to help build a new jail and replace its overcrowded current facility.

The county issued the bonds at $5,000 each. Voters approved the sale in November.

Municipal bonds like these are debt sold by a local government to buyers with a promise to pay them back at a fixed rate.

Flathead County Administrator Pete Melnick said the fast sale showed investor interest in the area and reflected the local economy.

“It just shows the quality of Flathead County [and] the way we run our government business here. The market was very attracted to our issuance, and it was an overall very good market sell,” Melnick said.

One of the buyers was Stockman Wealth Management, the Montana-based sister company of Stockman Bank.

CEO Ron O’Donnell said in-state investment like this helps Montana’s financial system.

“I think it really is helpful that we know our neighbor and our neighbor knows us, and it's really nice to keep that [money] from leaving the state and ending up on Wall Street. I think it's our way to continue to grow as a state and improve,” O’Donnell said.

Melnick said Flathead County kept about $10 million in bonds in reserve in case it needs to raise more money later.