Owen County commissioners approve up to $1.34 million for new jail design; financing plan outlined

Owen County commissioners voted Sept. 8 to appropriate up to $1,340,625 from correctional facility funds to cover design fees for a proposed new jail and discussed a financing strategy that would pair county cash with bonds to pay construction and related costs.

The action came after a detailed briefing on revenue forecasts and bond-sizing for the project. A consultant told commissioners the county could expect about $4 million in cash contributions and would likely sell roughly $27.5 million in bonds to fund a total project cost of about $31.5 million. The consultant estimated annual debt service at about $2,115,000 and said the payment could be split between the jail tax distribution (jail LIT) and the Public Safety LIT.

“Based on the way it’s written today, I think you could plow forward, issue loans,” the consultant said during the presentation, describing how income tax revenues and property-tax backup could support the bonds while acknowledging the county was subject to ongoing legislative changes to income-tax law.

Commissioner Steve moved to fund design work “not to exceed $1,350,000” and Commissioner Daniel seconded; the motion carried. The board specified the funding source would be the correctional facility LIT fund (the county’s correctional facility local income tax fund). County staff and the consultant discussed that the final number for the design contract would likely be closer to $1,340,625 as calculated by the county auditor.

Commissioners also approved a motion to engage bond counsel to develop a detailed timeline and steps needed to support a winter/early-spring bond sale. Commissioner Nick moved for the county to have bond counsel produce the schedule; Commissioner Daniel seconded and the motion carried. Bond counsel named in the discussion was Rick Hall of Barton and Born Green, who the consultant had previously briefed on the finance worksheet.

During the briefing, the consultant explained how changes to Indiana’s income-tax structure could affect long-term financing. He said current Department of Local Government Finance (DLGF) estimates put 2026 income-tax distributions at roughly $9.97 million and that under the new law the county could impose up to 1.2% countywide and retain additional revenue, increasing total distributions to about $11.5 million after restructure. He cautioned the legislature could still change the law before implementation and that the financing plan relied on both income-tax receipts and a property-tax backup security for bondholders.

Officials discussed timing for getting design work out to bid, with the consultant advising January as the most favorable month for competitive construction bids. Several commissioners said they preferred to authorize design work now so the project could remain on the target schedule. The board agreed to ask staff to prepare contract documents and to report back with the final design contract for record and accounting.

The motions passed on voice votes; no roll-call tallies were read into the record. The board directed staff to notify bond counsel and to continue coordination with towns and other local units about possible revenue-sharing and the project’s fiscal impacts.

Why it matters: The appropriation for design is an early but binding step toward the county’s plan to replace or expand correctional facilities. The financing plan combines available local cash with long-term debt that would create multi-decade obligations for the county and requires careful scheduling, bond-market preparation and continuing engagement with bond counsel and rating agencies.

Speakers at the meeting emphasized that the plan and numbers reflect the law as written at the time of the briefing and may change if the legislature revises tax law or if construction bids differ from current estimates.