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Public Building Commission reports $255.7 million net position, explains bond lease-back model
Summary
Becky Jones presented the semiannual Public Building Commission financial report showing a net position of $255.7 million, explained that 62% of financed buildings are public-safety projects covered by a sales tax, and described why the PBC issues bonds and leases buildings back to the county.
Becky Jones, financial management and administration staff, told the Board of County Commissioners sitting as the Public Building Commission that the PBC's statement of net position shows a net position of $255,700,000 for the period ending June 30, 2025.
"The public building commission is the mechanism in which by the county constructs and improves buildings by issuing bonds. The PBC then leases those buildings back to the county," Jones said, explaining the lease payments are used to fund debt service on outstanding bonds. She told commissioners the PBC had a large cash balance made up of bond proceeds being used for current projects and that liabilities largely reflect bonds payable.
Jones said the PBC's revenue sources backing bond payments are primarily rents charged to the departments occupying financed buildings. She said 62% of buildings being financed are related to public-safety projects and are covered by a corresponding sales tax; the remaining 38% receive revenues from countywide revenues, the library and a small amount from transit. Jones also said interest income is rising with market conditions and that "our bonds only pay interest in the first half of the year and principal is paid in September, so the rents are lower accordingly." She reported bonds payable were $5,000,000 for the first half of the year.
Commissioner Aaron Brewer, a newer member, asked for additional explanation of the PBC model; Jones replied that the PBC operates under bylaws that allow the commission to issue bonds without a public vote because the PBC is a federally separate entity with its own tax ID. "We can cash fund a portion of it, but it can only be up to 50%," she added, and said the model allows the county to operate more efficiently and avoid multi-year delays for construction projects.
No formal action was taken; the presentation was informational and commissioners thanked Jones for the report.
Why it matters: the PBC's financial position and the bond-lease model determine how the county finances capital projects. The split of financing sources and the timing of bond payments affect rent charged to county departments and the county's fiscal planning.
