Monday morning the Marshall County Council heard first reading of an ordinance to issue a General Obligation Bond for the Jail expansion project and an Additional Appropriation Ordinance that goes along with the jail project. This oridnance would appropriate the
Phil Faccenda, Jr. from Barnes and Thornburg explained the financing parameters to the council. The plan is to secure a General Obligation Bond of no more than $17,250,000 to pay for construction. Payments on the bond would be made for the county’s ¼ percent Local Income Tax (LIT) that is paying on the current bond issue. Until the current bond is retired, in 2027, the county will only pay the interest on the new bond. Once the old bond is paid off the payments on the new bond will increase to cover the debt.
Todd Samuelson from Baker Tilly told the council there is enough revenue from the LIT to cover the bond payments on the 41,000 square-foot addition that will add 208 to 320 beds to the Marshall County Jail.
While the County Council approved both ordinances on first readings that doesn’t mean the county has committed to the project. It keeps the project moving forward but Samuelson explained that the bond process takes several months.
Heath Thornton was the only council member to vote no on both ordinances. The council will hold a public hearing at their January 13th meeting and consider the ordinance on second reading. Bonds would be sold until spring 2020.
