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Commission directs staff to use revised debt structure for Judicial & Public Safety project, increasing cash contribution by $5 million
Summary
The commission directed staff to prepare a bond sale that uses an additional $5 million in year-end cash to reduce the bond issuance for the Judicial Law Enforcement Center renovation and Public Safety Building from $60 million to $55 million, projecting interest savings of about $1.3 million and annual debt-service reduction of $200,000.
The Board of Douglas County Commissioners on March 26 directed staff to prepare a bond sale using a revised debt structure for the Judicial and Law Enforcement Center renovation and expansion and a new Public Safety Building.
County staff advised the commission that adding $5 million in year-end cash to previously planned cash funding would increase the project’s upfront cash from $20 million to $25 million and reduce the debt issuance from $60 million to $55 million. Staff and the county’s financial adviser estimated the change would save nearly $1.3 million in interest costs across the life of the bonds and lower annual debt service by approximately $200,000.
Commissioners discussed the timing advantages, the contractor mobilization already underway and the value of reducing long-term interest expense. Staff noted that $4 million would remain in the county’s capital improvement program (CIP) for additional project needs, including interior fit-out of the public safety building. The administration said it will return with additional documents to support a bond sale planned for April.
A motion to direct staff to proceed with the revised debt model passed 5-0.
