WASHINGTON CO. COMMISSIONERS WEIGH OPTIONS FOR $60 MILLION JUDICIAL CENTER, RODEO ARENA PROJECTS

  

A day after being presented designs for a new judicial center and covered rodeo arena at the Washington County Expo, county commissioners received information about what it might cost to bring those projects to fruition.

Commissioners met in a budget workshop today (Wednesday) to hear estimates for the two projects, as well as how the county could finance them through either voter-approved bond measures or the issuance of certificates of obligation (COs).

Garry Kimball, CEO and Managing Director of Specialized Public Finance, Washington County’s financial advisor, said the combined cost for both projects is approximately $60 million, with the judicial center expected to cost $45 million and the arena estimated at up to $15 million.  If the county were to pursue both projects, he said the impact would figure out to an additional $0.0524 on the tax rate, which he called a “relatively modest” cost due to the county’s financial standing and lack of debt.

Should the county only pursue the judicial center for $45 million, the tax rate would increase by $0.0392.  Differing cost estimates of $10 and $15 million were shared for the arena, which would translate into $0.0082 or $0.0126 more for the tax rate.

Commissioners leaned toward the possible issuance of COs rather than calling a bond election, given the quicker turnaround time to receive the funds and the possibility of inflation and higher interest rates affecting project costs if the county has to wait.  If the county called a bond election for this November and was successful, the soonest it could receive the funds would be in 2027, whereas the county could secure funding this summer by issuing the COs.  Further, if the county were to go out for a bond and be rejected, Kimball said the county not be able to issue COs for three years.  Commissioners also expressed concern about rules changing at the state level that could make it more difficult for cities and counties to issue debt in the future.

County Auditor Shawna Hollis revealed that the county has $2.4 million in its Interest and Sinking (I&S) fund from prior debt, which Kimball said gives the county additional flexibility to ease its way into the new tax burden and drive down the impact to taxpayers.  Kimball said the county has “a ton of leverage” and is “uniquely situated” to pursue these projects.

Commissioner Kirk Hanath said these projects were not something the county set out to do on a whim, and that much time was spent discussing them in strategic planning.  County Judge John Durrenberger said, “I don’t know much more that we could do to let people know what we’re planning to do.” 

Hanath said his mind was eased with knowing the county can use its existing debt service fund, as if the county can do this in increments, it might be able to avoid increasing the rate.  Commissioner Candice Bullock said, “We’re literally in the best possible financial situation that anyone could be in.”

The county’s last building project was the Engineering and Development Services building on Highway 36 North, paid for with $5 million from reserves.

A notice of intent to issue the COs will come before commissioners at their June 23^rd meeting.  The official issuance would be voted on during the August 11^th meeting.