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Floyd County to bridge nearly $1 million shortfall for Health Department renovation
Summary
After bids exceeded the Health Department's $2.4 million target, county leaders agreed to commit up to $1 million in GO bond proceeds split between the Council and Commissioners to close the gap and keep the project on schedule.
Floyd County officials moved April 28 to cover a roughly $962,000 shortfall for renovations to the county Health Department, approving commitments of up to $500,000 from both the County Council and the Board of Commissioners.
Nick Creevy of the Floyd County Health Department told the joint meeting that bids for the renovation came in at $2.908 million against a target budget of $2.4 million and that the department needs to vacate its current building by the end of September. "They bid out the project and received bids for their target budget of $2.4 million. The bids came in at $2.908 million," Creevy said. Finance figures cited at the meeting show a 4501 fund cash balance of $1.571 million, leaving an approximate $962,000 deficit, a figure described by staff member Stan Heil.
County legal and finance advisers described options for converting a bond anticipation note into a long-term bond to manage cash flow. Brad Bingham of Barnes & Thornburg and Tim Berry of Crowe outlined legal and cost considerations for that conversion. To keep the project moving, the Council voted unanimously to commit up to $500,000 from Council GO bond proceeds (moved by Denise Konkle), and the Commissioners separately voted unanimously to commit up to $500,000 from their GO bond proceeds (moved by Jason Sharp). Officials said the intent is to reduce scope where feasible and pursue financing conversions to limit longer-term costs.
The moves do not finalize a long-term financing instrument; staff and counsel indicated further steps will be needed to convert short-term borrowing to a bond and to reconcile project scope and cost reductions. No final construction contract text or completion guarantees were recorded at the meeting.
