Floyd County council hears health department present $1.2M shortfall; moves to bond project and seek commissioners’ share

The Floyd County Council on Tuesday heard a detailed presentation from the health department about a large cost gap on a planned renovation of a facility at 3317 Grant Line Road and voted to pursue bonding and intergovernmental cost-sharing to close the shortfall.

Dr. Tom Harris, the Floyd County health officer, told the council that the architect’s $2.4 million estimate was far below the low construction bid, leaving a shortfall that—even after proposed deducts—remains in the low‑seven figures. “The bids told you what the project is worth,” Harris said, explaining that market square‑foot prices ran substantially higher than the initial estimate and that cutting features would reduce capability.

The health department presented five categories of cost reductions: (1) cheaper finish materials (about $3,660 saved), (2) simplification of the second‑floor plan (roughly $83,000), (3) removal of casework and plumbing in the multipurpose room (about $4,400, but a loss of revenue‑generating capability), (4) scaled options for the outdoor overhang/enclosure (savings between $16,000 and $210,000 depending on depth of cuts), and (5) a reduced second‑floor build‑out affecting other county agencies (potential savings of $120,000–$238,000). Harris said the combined, realistic savings ranged “anywhere from $266,500 to $278,500” but that those cuts would substantially reduce future program capacity.

The presentation flagged an operational deadline: the department’s lease on the Baptist Hospital campus expires on Sept. 30, 2026, meaning the county needs a functional facility before that date, Harris said.

After staff described legal and fiscal constraints — including the county’s 2% net assessed‑value bonding cap — Council member (speaker 11) moved to: convert the project financing to a $3.2 million bond when construction is complete, accept the contractor deducts that bring the estimate closer to budget, delay construction of the outbuilding for now, and split an estimated remaining $600,000 funding gap between the council and the county commissioners. The motion was seconded for discussion and carried by the council; members also directed staff to bring bond debt‑service projections and funding scenarios to a joint meeting with the commissioners on April 28.

Council and staff emphasized tradeoffs. Several members warned that cutting the multipurpose room or other features would limit the health department’s ability to hold billable training and vaccination activities. “To save $4,400 we would potentially lose more money than that every year from the loss of capabilities in that room,” Harris said.

Next steps: the council directed staff to present detailed bond debt‑service estimates and funding options to the commissioners in a joint session, and to keep the contractor informed while scope adjustments are finalized.

Sources: Presentations and exchanges by Dr. Tom Harris (Floyd County health officer) and Louie Ann Jensen (president, county health department board) during the April 14 council meeting.