Commissioners table decision on financing for $61.5 million jail expansion after bond presentation

Bullock County commissioners on Tuesday delayed action on a proposal to issue long-term bonds to finance Phase 1 of a planned jail expansion, after a detailed presentation from the county's financial adviser about two financing options and their implications.

Doug Gebhardt of Davenport & Company told the board the project cost for Phase 1 is “just north of 61 and a half million dollars,” and that the county's March SPLOST referendum authorized $51 million to be applied to the project. Gebhardt said the county must therefore seek additional long-term financing to cover the remaining cost and interest. He described two scenarios: a shorter 12-year amortization that would concentrate repayment into two SPLOST cycles, and a 20-year structure that spreads payments out and lowers annual debt-service pressure on future SPLOST collections. “Our recommended approach is the 20‑year financing,” Gebhardt said, noting the structure would still allow the county to prepay the bonds early if future receipts permit.

The advisers proposed issuing bonds through the Public Facilities Authority in a public market sale and backing repayment with SPLOST revenue under an intergovernmental agreement that would pledge the county’s full faith and credit. Gebhardt provided an example “all‑in true interest cost” of 4.29% for the modeled transaction and warned the board that if a future SPLOST were not approved or collections were lower than expected, the county’s general fund could be responsible for remaining debt service. He showed that, under the 12‑year scenario, roughly $27 million of additional collections would be needed from the next SPLOST cycle and that the equivalent tax impact on the digest would be about 1.29 mills if the general fund had to make up $4.5 million in annual payments. Under the 20‑year scenario the projected annual payment tied to the next SPLOST would fall to about $2.4 million and the millage equivalent would drop to roughly 0.68–0.69 mills.

Roger Murray, identified as bond counsel in the presentation materials, explained the Public Facilities Authority structure and said it is commonly used in Georgia to secure market credit ratings comparable to a GO bond because the county would guarantee debt service under the intergovernmental agreement. County Chief Financial Officer Christy King said staff supports the 20‑year option “for the flexibility of it.”

Several commissioners asked questions about alternatives, including issuing GO bonds via referendum and whether the county could wait to spend SPLOST receipts rather than borrow now. Gebhardt replied that a GO bond referendum could be structured but could not reasonably be amortized inside the current six‑year SPLOST term and that public market bond financing was the more practicable route for the proposed scale. Commissioner Nick Newkirk raised concern that the ballot did not spell out a bond issuance and asked whether voters would have backed a larger total cost; he said, “I don't know if the citizens would have known that, and I don't know if they would've voted for it if they knew it was gonna be $84,000,000.”

After discussion, a commissioner moved to table action and the motion to table carried on a 3–2 vote, delaying the board’s authorization of a resolution that would have directed staff and advisors to proceed with bond issuance steps. Gebhardt said the advisers will return with a parameters resolution on June 17 and, if directed, pursue rating agency calls in July with a targeted bond sale in August.

The board did not adopt any financing documents at the meeting; the matter will return to a future agenda for further review.