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County approves $60 million general‑obligation bond for justice complex amid concern over issuance fees
Summary
The board authorized $60 million in general‑obligation bonds to fund the justice complex and jail renovations; at least one commissioner questioned underwriting and legal fees, which the county's financial adviser defended as consistent with practice.
The Clayton County Board of Commissioners voted July 7 to authorize the issuance of $60,000,000 in general‑obligation bonds for projects tied to the justice complex, including jail renovations.
Staff presented the bond resolution and commissioners debated the fees associated with issuing the bonds. Commissioner Hambrick said fees seemed "exorbitant" and urged reconsideration; CFO/financial adviser explained there are three components: the financial adviser's fee (1% of principal plus an hourly consulting rate), bond counsel's hourly charges and court validation costs, which the adviser estimated at about $7,500. The adviser said his 1% fee has been charged since 1990 and invited the commissioner to show lower competing quotes.
Commissioner Reeves and others framed the bonds as a fulfillment of projects approved by voters via the SPLOST ballot and emphasized the need to address the county's justice infrastructure. Despite concerns over issuance costs, the board approved the bond resolution by voice vote.
The county's financial adviser noted bonds may be used to advance‑fund other SPLOST projects if the board chooses; staff said the issuance will be structured and documents executed following the approved resolution.
