Financial adviser outlines jail bond plan and homeowner cost estimates

A financial adviser working with US Capital Wealth presented to Freestone County Commissioners Court on Aug. 5 the financing options for a proposed county jail and urged the court to consider calling a bond election. The adviser said the county is in a “two-week window to call bond election” and that, if the court calls the election and voters approve on Nov. 3, the county would then proceed with engineers and architects and coordinate construction bidding with debt issuance.

The adviser provided amortization scenarios for 20, 25 and 30 years and said the analysis uses the county’s latest certified assessed values. He estimated that under a 20-year amortization at current borrowing assumptions the county’s annual payment would be about $3,900,000 and that would equate to “in between 7 and 8¢ on a 20 year payment.” He also listed direct homeowner impacts: “20 years will cost the tax rate, $86 a year. On a 25 year payment, $77 a year. And on a 30 year payment, $76 a year” for a $100,000 taxable value, and said any election document would disclose those figures.

Commissioners asked about interest-rate risk and timing; the adviser cautioned that interest rates are not locked until the county borrows and recommended coordinating the construction bid window (where bids typically remain valid 30–45 days) with debt issuance. He said no budgetary effect would occur this fiscal year and that the jail consultant and staff would return next week with more detail if the court decides to call the election.

The discussion did not include a formal vote on calling an election; the adviser said the next step would be presentation of the election document and further review by the court and consultants.