Owen County advances jail project planning, approves fund transfer and keeps bond cap flexible
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Summary
Commissioners heard bond counsel outline a financing timeline for a new jail: a bond structure payable from income taxes, a target January guaranteed maximum price (GMP) and bond ordinance, and a February bond sale. The board approved a transfer of roughly $630,000 into the new jail project fund and discussed a single RFP team (BW and Garmong).
Owen County commissioners on Thursday received a detailed update on the proposed jail project and its financing, then approved moving county cash into a newly created project fund. Bond counsel Jeff of law firm Frost Brown Todd told the board the recommended financing structure is a property-tax-style bond payable from income-tax receipts to avoid triggering full property-tax procedures, and he outlined a timeline that targets a guaranteed maximum price and bond ordinance in January, marketing in early February and a bond sale later that month.
Jeff said the last estimate of sources and uses was about $31.5 million, including a $442,000 contingency, roughly $3 million for water, sewer and site ingress/egress, and an assumed $4 million cash contribution from a correctional facility fund. “When we set these parameters, that will be the maximum amount, and it'll have to come in equal to or lesser than that,” Jeff said, describing how the board can approve a not-to-exceed borrowing cap (the counsel cited a $27.5 million bond amount in the discussion) and then reduce the borrowing when the GMP is finalized.
Commissioners discussed utility and site costs, potential grant work, and the contractor selection process. Sam, who is coordinating developer outreach, said he expected more complete numbers within a few weeks and that developers are working with town councils and grant partners on possible savings. Commissioners emphasized broad outreach to local contractors for subcontracting opportunities once the prime developer is selected.
On a formal motion, a commissioner moved to transfer $630,000 from fund 1170 (earmarked for project 2425) into the jail project fund to preserve earmarked cash balances for debt service; the motion was seconded and the chair called the motion carried. Treasurer staff reported the originating fund’s cash balance as $3,861,003.24. The board instructed counsel and staff to prepare the necessary resolutions so those dollars will carry forward past Dec. 31.
Commissioners also reviewed the single RFP response for project development: BW is the developer and Garmong is listed as the contractor; the county’s jail committee is scheduled to meet Thursday to confirm or decline that selection before the broader county action. Speakers noted that subsequent solicitations for subcontractors (electrical, paving, etc.) will be publicly advertised and must meet bonding and qualification criteria.
Next steps outlined by counsel include delivering bond parameters to bond counsel and rating agencies, receiving the GMP in January, approving a bond ordinance and additional appropriation hearing in January, marketing the bonds in early February and closing in mid- to late February so cash would be available in early March. Commissioners said they want the lowest possible borrowing consistent with the project needs and asked staff to return with revised numbers and draft resolutions at the December meeting.
