Wednesday, May 8, 2024
The Coryell County Commissioners Court approved a $13.6 million plan to finance the expansion of the Coryell County Jail and the construction of a justice center, the Leon Street Annex, during the Jan. 10 meeting.
Of the amount, county leaders agreed to fund $7 million of the cost up front, but the vote was not unanimous. County Judge Roger Miller opposed the plan presented by Pct. 2 Commissioner Scott Weddle to transfer $1 million from a fund dedicated to broadband internet planning to help pay for construction costs. However, Pct. 1 Commissioner Kyle Matthews and Pct. 3 Commissioner Ryan Basham both supported Weddle's proposal, which passed by a 3-1 vote. New Pct. 4 Commissioner Keith Taylor, who was attending training for new county leaders, was not present at the meeting.
"I have been examining every single alternative the county has available, and I consulted with the county auditor's office," Weddle said. "I'm of the opinion that when I spend my own money, I try to put as much down as I can because I hate paying interest."
Weddle said putting an extra $1 million down would save the county an estimated $125,000 in interest costs.
Miller was against transferring the $1 million allotted for broadband studies "because it looks at areas that are underserved or unserved and that is an economic driver." Miller said rising property values should also help offset costs.
"I'm in agreement with Mr. Weddle on making that change," Matthews said. "I'd like to buy down ahead of time."
Weddle said it made sense financially for the county.
"My good business sense tells me that you take any opportunity to reduce the cost up front," he said. "That reduces the payments per month and it reduces the interest. I don't believe funding broadband is a primary function of county government. The people I've talked to, broadband is not at the top of their list. Security and maintenance of transportation are two key areas for county government. We could look for specific grants for broadband."
Basham said he also favored reducing the tax burden by increasing the county's upfront funding to $7 million.
"The more we can put down up front, the more we can save in the long-term," he said.
Miller took issue with shifting priorities from the budgeting process.
"Why do we have a budget? The county agreed ..." Miller said.
"We've agreed to budget amendments, too," Matthews said.
"We make budget amendments throughout the year," Weddle said. "Both of these allocations (construction funding and broadband) are in the same fund (category). I think the citizens of the county want us to get these projects done, and with the cost savings it is a better conversation with my constituents."
"I agree," Matthews said, "and according to our county attorney, it can be done."
Weddle said the strong need for jail expansion and a new justice center arguably rises to the level of an emergency.
"I think action by the court is imminent," he said. "It is almost an emergency. A, we are out of compliance at our county jail (because of overcrowding) and B, we have employees working in substandard conditions (which the Leon Street Annex would resolve). In my opinion, it's crunch time."
Multiple funding options were presented to the commissioners court by Vince Viaille with Specialized Public Finance, each of which has an estimated 4% interest rate.
He said the cost of funding the jail expansion only would be nearly $4.9 million, which would have a 2.2 cent tax impact over a seven-year period. The cost of funding construction of the Leon Street Annex would be just over $8.7 million. The cost of both projects combined - with the $7 million initial payment, is expected to have a tax impact of 2.9 cents over seven years. If only $6 million had been paid up front, as Miller favored, the tax impact would have been 3.4 cents over seven years.
Following approval by the commissioners court, the plan will now go to the state Comptroller's Office and the Texas Attorney General's Office for approval.
Viaille said the item should come back to the commissioners court with a list of bidders on Feb. 14, and the closing date for the county to receive construction funds is anticipated on March 15.
