Mariposa supervisors direct staff to pursue sales-tax option and explore TOT to fund new sheriff's headquarters

Mariposa County supervisors asked staff on April 1 to develop concrete ballot and financing plans for a new sheriff's headquarters, directing County Administrative Officer Joe Lynch and Sheriff Jeremy Breeze to return with detailed cost and revenue scenarios, including a sales-tax ballot initiative and a possible transient-occupancy-tax (TOT) increase.

The board's request followed presentations from Banner Construction Management, which outlined site options and construction cost estimates, and CrisCom, a government-relations contractor advising on state and federal funding. The sheriff said a consolidated headquarters would improve public safety operations and serve as the county's emergency operations center during disasters.

Why it matters: The project is large relative to Mariposa County's budget and visitor-driven service demands. Banner's preliminary budgets put the two-building project at about $47 million today—roughly $37 million for the main operations building (Building A) and $10 million for a separate evidence/training building (Building B). The board's direction recognizes both the size of the need and the political reality that local voters or visitor-generated revenues will likely have to underwrite the cost.

Banner's finance analysis summarized several paths: USDA rural programs (loans and relending programs that the county currently qualifies for but which have little or no immediate funding available), municipal bonds (estimated coupon rates around 5 percent under current market conditions), developer-financed build-to-lease options (which require higher returns and carry marketability risks in a small community), and federal/state legislative funding the county is pursuing through CrisCom. Banner and CrisCom also recommended allocating a modest preliminary design budget (about $1.2 million) to make the project —bid-ready— while funding is sought.

Key numbers and constraints: Banner's current total project estimate is $47 million; Banner noted this is a —today's cost— and will change with timing. Scott Murphy of Banner described a developer-financing scenario that would require rental equivalents of roughly $3.2 million per year (loan/lease service), and cautioned that outside investors expect a debt-service-coverage ratio that may be hard to meet for remote properties. Joe Lynch said the county currently collects roughly $3.9 million a year from Measure M and that a half-percent sales tax previously dedicated to the hospital produced about $2.1 million a year before it expired March 31. Lynch said a sales-tax initiative similar to the prior half-percent could materially cover the projected annual payment and that combining Measure M funds with new tax revenue could be a feasible funding plan if voters approve it.

Board direction and next steps: The board's consensus direction was to have staff return with a detailed fiscal plan and ballot-language options. Specifically the board asked staff to: - Return with a proposal outlining one or more sales-tax ballot measures (amount, expected revenue, and anticipated voter impact) and the mechanics and timing for putting a measure before voters, and - Analyze a potential TOT increase (dollars-per-percent and projected annual revenue), plus how Measure M dollars could be allocated toward annual debt service.

County Administrative Officer Joe Lynch told the board he would prepare options, including the estimated per-parcel property-tax equivalent and sales-tax/TOT revenue projections, and present a recommendation at an upcoming meeting. CrisCom said it is working on state and federal budget requests including a $1.2 million request for design-stage funding, and Banner said it would update cost estimates when the board decides a preferred timetable.

What the board did not do: The board did not approve construction or commit to a specific funding source at the April 1 meeting. Supervisors voiced support for visitor-based (sales/TOT) funding rather than a broad property-tax increase; they also emphasized the need for public outreach if a ballot measure is pursued.

Bottom line: Supervisors signaled willingness to pursue a voter-supported sales-tax solution and asked staff to return with concrete revenue, ballot and timing options while CrisCom and Banner continue to pursue state/federal funding and refine design and cost estimates.