Chesterfield County council places 1% sales-tax referendum on ballot to fund $50M detention center

Chesterfield County Council on Wednesday approved a second-reading ordinance to place a 1% capital sales-and-use tax referendum before voters to fund up to $50 million for construction of a new county detention center.

The measure, read aloud by the chair, asks whether a one-percent sales-and-use tax should be imposed in Chesterfield County for no more than eight years to raise the amount specified for design, engineering, purchase (including property where needed), construction, renovation, equipping and furnishing of a new county detention center. ‘‘This is not a want,’’ Chair (S1) said, ‘‘our detention center is functionally and structurally obsolete. It’s a liability to us.’’

Council members focused discussion on how the project would be financed and what the referendum would mean for taxpayers. Staff member (S3) told the council the county expects to combine revenues from the proposed 1% sales tax with existing debt mills (seven mills currently levied for debt service) and to issue bonds for the $50 million principal; annual payments, the staff summary said, would be covered in part by sales-tax receipts and in part by the existing debt mills. ‘‘The bond would be $50,000,000, but to make the annual payment would be the sales tax and the 7 mills,’’ S3 said.

Committee member (S6) flagged the arithmetic for members, noting that roughly $5.5 million per year for eight years would total about $44 million and asking how the remaining roughly $6 million in the project estimate would be repaid. Staff described the $50 million as a preliminary, ‘‘ballpark’’ estimate developed with engineers and architects and said a bed study and additional planning would refine the size and cost. Council members agreed town-hall meetings and district-level outreach would be needed to explain the tax and how it applies to people who spend money in the county, not only residents.

The chair cautioned that the ballot language must be approved by the Elections Commission in Columbia before it can be used, and that county staff and bond counsel will need to finalize wording and financing arrangements. Staff said the county’s bond attorneys will formally bid the bonds to lenders to secure the best interest rate when the county proceeds with issuance.

Committee member (S6) moved to approve the ordinance for second reading; Committee member (S7) seconded. The council approved the measure by voice vote; the chair recorded an "aye" and no members voiced opposition during the roll call. The ordinance, now approved for referendum placement pending Elections Commission review, remains subject to final legal review and the county’s further planning and outreach.

The council adjourned after the vote. Members said they plan outreach to each district to educate voters on what a yes or no vote would mean.