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PUBLISHED: Wednesday, July 11, 2007
Tax bonds to finance jail



On Monday the County Board of Commissioners voted 6-1 to issue county limited tax general obligation bonds for the jail project.

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The Finance Committee tabled the financing motion last week because Administrator John Males wanted to research some other bonding options. Although he is recovering from recent heart surgery, Males directed Assistant Administrator Wendi Willling to place the issue on the July 9 agenda. He and the bond counsel both recommend the limited tax bonds.

Treasurer Kathy Dorman said this was the cheapest way to go and the limited tax bonds are covered by the full faith and credit of the county's general fund.

They plan to bond for up to $16.6 million to build, equip, furnish and develop the site for a 200-bed addition to the current jail. The commissioners intend to pay for the jail by renting beds to federal marshal prisoners.

"I'm more comfortable with the $79 (up from previous $50 bed rental rate) and more when we build the jail...It makes me think we should go ahead," stated Commissioner Norton Schramm.

Commissioner William Walters, who voted no, said his objection hasn't changed over the past couple years.

Although he is not opposed to building a jail, "I do not think it is in the best interests of the county to build a jail to rent beds".

Sheriff Virgil Strickler explained again the bed rental rate is based on a combination of the going rate in the district, which includes Wayne County, and Sanilac's cost of providing jail cells to federal prisoners.

In early June, the county's bond counsel and bond attorney explained that 90% of cities and villages used limited tax bonds..

Although the general fund would be the co-signer as a back up security, the special millage funds such as the veterans or library millages would not be at risk.

As with any general obligation bond, the public has the right to petition for a referendum.

Commissioners have been discussing a possible jail project for about four years. The original proposal called for private financing of a 254-bed facility. The driving force behind the project is the deteriorating condition of the older part of the jail that's more than 50 years old.





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