Daviess County hires municipal advisor as jail renovation costs climb

Daviess County Fiscal Court on May 28 approved an engagement letter with Robert W. Baird & Company to provide municipal advisory services in connection with potential bond financing for renovations and improvements to the Daviess County Detention Center.

County staff presented the engagement, explaining that a municipal financial advisory firm assists with legal documents, market preparation, regulatory disclosures and bond sale transactions. "By selecting a firm that will properly market our securities and transactions, they will ultimately allow the county to secure a competitive interest rate which over the life of any issuance will more than compensate for their service fee," Mr. Johnson told the court when recommending approval.

Commissioner Marksberry asked for a clearer public accounting of how the project cost escalated from earlier estimates in the low tens of millions to about $56 million. "Could someone just please explain to me how this all started and explain to the public how did we get in this situation?" he asked, noting state jail inspections and a subsequent study had identified a "whole slew of deficiencies" that led to the current scope.

Staff responded that the state conducts two annual jail inspections and that a consultant’s initial study identified many deficiencies that informed the larger renovation proposal. The court approved the municipal-advisor engagement by voice vote. No roll-call tally was recorded in the transcript.

County officials said the engagement is intended to position the county for any future financing decision; the engagement itself does not commit the county to an issuance without further approvals.