Coconino County approves steps to finance new jail medical unit; board backs $10 million bond plan
Summary
The Board of Supervisors and the Jail District board moved forward with plans to finance construction of a new 24‑bed medical housing unit and intake remodel at the Flagstaff jail, approving the legal steps needed to issue up to $10 million in district bonds to pay part of the $20 million project.
Coconino County supervisors voted to authorize legal agreements that allow the county’s Jail District to issue limited revenue bonds not to exceed $10 million to fund construction of a new medical housing unit and intake-area remodel at the Flagstaff detention facility. The board also adopted a parallel resolution as the Jail District Board of Directors to proceed with the debt issuance.
The sheriff’s office described the project as a response to evolving medical needs among people in custody, not a population-driven expansion. Sheriff staff and jail commanders told the board the jail’s current medical space is a six‑cell clinic that lacks recreation yard space and capacity for detox, psychiatric and ongoing medical care. The new facility would be a full housing unit with about 24 medical beds, separate detox and infirmary wings, on‑site medical offices, four safety cells and an enclosed medical recreation yard, the sheriff’s team said. The plan also includes a remodel of the facility’s intake and release flow so booking, transport and releases occur in separated areas to reduce congestion and potential safety risks.
County officials said the total project budget is approximately $20 million; the board approved financing for up to $10 million and staff indicated the jail district intends to pay the remainder from district revenues. County financial staff and outside advisors presented a financing timeline and noted ratings work with bond analysts was underway. The county said market conditions remain uncertain; a later presentation from county finance staff and bond advisors showed preliminary estimates for interest costs and noted that the final borrowing amount could be modestly different than today’s authorization depending on market rates and bond pricing.
The project team told supervisors the goal is to retire the debt well before the jail district tax sunsets in 2051 and stressed that jail district revenue may not be used for other county capital needs. Sheriff and jail staff described the new medical unit as a therapeutic, hospital‑style environment with natural light and dedicated staff, and said contracting medical services through an outside provider (Wellpath) will continue to supply clinical staffing and transports when higher levels of care are required.
Supervisors asked about contingency planning for volatile construction and materials markets, and staff said the construction contract and budgets include contingency allowances and that the county will monitor costs as bids are finalized. Supervisors also requested follow‑up detail on the volume and clinical profile of people now housed in medical and intake so the board can track program needs and operating cost changes after construction.
Because the jail district is a separate legal entity funded by an excise tax, the board’s action required two steps: the supervisors approved an intergovernmental agreement and continuing disclosure undertaking, and the Board of Directors adopted the district resolution authorizing the lease‑purchase and trust agreements necessary to issue bonds. The board voted to authorize staff to complete the bond documents and proceed with pricing when market conditions are appropriate.
The project had been discussed at length in public meetings and site visits; supervisors and staff said they would continue oversight as the project moves into procurement and construction.
Votes at a glance: The Board of Supervisors adopted the required authorizing resolutions and the Jail District Board of Directors adopted its resolution enabling the issuance of up to $10 million in jail district limited revenue obligations. The board’s actions were approved in separate votes (board and district), consistent with staff counsel’s recommended approach for the financing steps.
Ending: County officials said they will return to the board with final bond pricing, an updated project budget and routine construction and financing updates as the project proceeds.
