Tuesday, April 23, 2024
It's one thing to need a larger jail and a justice building in Coryell County, but it's quite another thing to pay for it.
The funding source for the county's jail expansion project and the construction of a justice building were addressed during a recent commissioners court meeting by Vince Viaille, an adviser with Specialized Public Finance, which is based in Austin.
In a summary of options, he noted that the county would have to make payments for the projects during a seven-year timeframe based on the funding option the Coryell County Commissioners Court has chosen.
"With a $4.6 million project, that would add approximately 2 cents on the tax rate," Viaille said. "We are anticipating a 4% interest rate. That is high compared to recent years but less than it has been historically. There would be estimated annual payments of $785,000 per year over seven years."
He said if the justice building is added, payments would be $1 million and $55,000 over the same timeframe, with an impact of 2.8 cents on the tax rate.
"On January 24 we will come back to the commissioners court with bids in hand, and the closing date would be February 16," Viaille said. "The county would receive the funds on the closing date."
County Judge Roger Miller said the construction costs will be offset by a significant savings in sending inmates to other counties to be jailed, because the Coryell County Jail does not have adequate space.
"I do believe we will save at least $750,000 per year on housing inmates outside the county, although we will still have to house some inmates out of the county," Miller said. "The impact to the FY '24 (2024 fiscal year) tax rate is .8 cents. It is my belief with our current tax rate, we will be able to accommodate that."
Miller said he is concerned that the estimated cost of the project at $6.2 million “might be a little bit low. I'm still concerned about the cost of demolition (of the old jail and the building currently housing the Texas Department of Public Safety)."
Commissioner Scott Weddle asked if he thought $6.3 million would be sufficient.
"I don't know what the number is — the demolition part is what concerns me," Miller said. "Also, the paving of additional parking areas. I'm more comfortable in the $6.8 to $6.9 (million) range. I think we can work the savings and tax revenue to offset this. I do not believe growth in the county will stop.
Commissioner Kyle Matthews said while he agreed that initial estimates were "a little low," he said he did not believe the project "would come close to needing $6.8 or $6.9 (million)."
Viaille said the commissioners court had until Dec. 20 to determine the amount of money needed.
"We can't be in a position where we come up short," Miller said.
"I agree," Weddle said.
Miller asked County Auditor Ben Roberts if there were any issues he was concerned about regarding the project.
"My only question is why we decided on a seven-year term (instead of a longer period to pay off costs)," he said. "That won't prevent me from approving the plan.”
Miller said the seven-year option was chosen "to keep it to the shortest timeframe and reduce expenses. I think we're in a good position to support this."
"I concur," Weddle said. "I also anticipate that the rate the county is spending to house inmates (currently $1.3 million annually) is going to balloon."
In addition to expanding the jail to meet state requirements, a reason to expand the jail is to reduce those payments Weddle referenced.
