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Tuesday, July 14, 2020

Marshall Co. Commission Hears About New Jail Financing Options

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Marshall County Commissioners met last Monday. Sheriff Dan Hargrave, the architect, builder, and bond representative met with the Board to discuss financing options for the proposed jail project and reviewed 6 different options for financing. After consideration, consensus was to wait until perhaps January to finalize a decision, allowing adequate time for public meetings, and still consider bidding for spring construction. Six financing options were suggested.

  • Option 1 – General Obligation Bonds could be issued, and if it is over $300,000 would require an election.
  • Option 2 – The County would create a Public Building Commission, that would finance the jail by issuing bonds. The County would then enter into a Lease/Purchase agreement with the Commission. Creation is subject to 60 days publish and protest petition. If protested, there would be an election before a Public Building Commission could be created.
  • Options 3 & 4 – Lease/Purchase options subject to 30-day Notice & Protest period. Benefits are no election is required & it doesn’t count toward county debt limit. These options are subject to the tax lid and would be a bit higher interest.
  • Options 5 & 6 – Sales tax based. Option 5 is strictly a county wide sales tax which would require a public vote to approve. Option 6 is a sales tax that is established through a State Statute. The County would have to request to the State that the county be included in the Statute to receive these sales tax dollars. Bonds would be issued, which would be paid back with the Sales Tax proceeds.

The Board feels at this time it is best to put the proposed jail project on hold until Spring. This would allow time to finalize financing for the project and will allow time to be proactive on presenting plans to the public via public meetings. The architect concurred, noting that the project will then have to be sent back out for bids. The Board will likely be making a decision regarding the proposed jail in January to allow for adequate time for bid processing for possible Spring construction.

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