WASHINGTON CO. COMMISSIONERS REVIEW COSTS, TIMELINE FOR PROPOSED JUDICIAL CENTER, RODEO ARENA PROJECTS
Washington County Commissioners discussed more specifics today (Monday) about the financing and timelines associated with proposed projects for a new judicial center and covered rodeo arena at the Expo.
Garry Kimball, CEO and Managing Director of Specialized Public Finance, recapped the highlights from his presentation during a budget workshop last month while providing updated information and answering citizen questions about the true cost that residents could expect to pay in order to support the projects, and how that cost will likely be impacted by the choice to either issue certificates of obligation (COs) or call a bond election.
Kimball reiterated that the county’s lack of debt will prove beneficial in securing a strong interest rate and minimizing the tax burden on residents. He stated that the not-to-exceed figure of $61 million for issuing COs could be supported with a net 3.95 cent tax rate increase, reduced from initial projections after learning the county had $2.4 million in its debt service fund to put toward payments. He expects the county will be able to obtain a fixed interest rate in the low 4 percent-range over 25 years.
Timeliness will play a crucial part in the court’s decision. Kimball said the total cost that voters will pay, counting the principal amount plus interest, would come out to $101 million in current conditions – assuming the county did not refinance or perform any pre-payment over the course of the 25-year term. The county could receive funding from the COs later this year, but should the county opt to call a bond election this fall instead, the county would not be able to receive those proceeds until 2027, and Kimball expects an anticipated federal interest rate hike could add an additional $3.8 million to the amount voters pay. If the county’s bond election is rejected, the county would be locked out of financing the projects for three years, leaving them subject to further interest rate hikes and higher costs due to inflation.
Kimball said if 10 percent of registered voters in the county sign a petition and present it to the court before it takes action on awarding the sale of the COs, that would force the calling of a bond election in September for the November ballot. The petition would need to be verified by the county clerk. Kimball noted, though, that in over 30 years, he has only seen one project like this lead to a petition, and that was for a project calling for a 15-cent tax rate hike. He said he normally advises entities pursuing over a 10-cent increase to go out for a bond, while projects underneath a 5-cent increase are regularly funded by COs.
Commissioner Kirk Hanath said the county is “not trying to hide anything”, noting that the strategic planning process involved constituent feedback and reinforced the need for projects like this, particularly the judicial center.
Commissioner Candice Bullock stressed that with the senior homestead exemption and tax ceiling, elderly homeowners over 65 would not feel the impact of a tax rate increase.
Commissioners will officially vote on whether to issue the COs during their meeting on August 11th.
In the only non-routine action item at today’s meeting, commissioners agreed to appoint the tax assessor-collector chief appraiser to calculate the county’s no-new-revenue tax rate and voter-approval tax rate.
Click here to view the YouTube recording of Monday's meeting.