Commissioners tangle over jail financing
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The decision, reached by an 11-9 margin, came with opposition. Some commissioners didn’t like the wrap-around loan concept because the county would only make payments on interest – not principal – until 2013. Others favored a 15-year wrap loan which would save the county over $1.1 million in interest.
“We need to suck it up and pay off our debt as quickly as possible,” said Commissioner George Smartt. “We don’t need a credit card mentality.”
Commissioner Swanson Bennett countered by saying the 20-year wrap plan gives the county more flexibility in case another major expense should occur such as a new school. Bennett also warned the county may soon to be asked to pick up some of the slack from the state, which may soon be forced to slash spending to balance its budget.
Commissioners have settled on a $6 million price tag for a new jail, and architect Jim Armstrong is supposed to have preliminary plans available in June. What’s left to be decided is the type of loan the county should take, and the price of additional land which is located next to the jail. The land is owned by the Smith family.
Scott Gibson of Cumberland Securities presented three ideas to the commission for jail financing.
• A 20-year level debt which would cost the county $9.8 million over the life of the loan.
• A 20-year wrap debt which would cost the county $11.1 million.
• A 15-year wrap debt which would cost the county $9.9 million.
According to Gibson, none of the options would require a tax increase.
Commissioners tried to table any action until the next monthly meeting but fell short of the 13-vote majority needed. Commissioners then voted on whether to move forward with plans for a 20-year wrap loan and that passed, 11-9.
The decision doesn’t mean the County Commission has agreed to accept the 20-year wrap, but commissioners will likely have that option during their next meeting April 22.