WASHINGTON CO. COMMISSIONERS SPLIT JUDICIAL CENTER, EXPO ARENA PROPOSALS BETWEEN CERTIFICATES OF OBLIGATION & BOND ELECTION

  

One of Washington County’s major proposed projects is headed for a bond election.

County commissioners voted 4-1 today (Monday) to split up the planned joint issuance of up to $61 million in certificates of obligation (COs) for a judicial center and covered rodeo arena at the Expo.  Now, a $45 million issuance of COs is set to be considered during the court’s meeting on August 11^th for only the judicial center, while the county is expected to call a bond election this November for the rodeo arena.

Commissioner Misti Hartstack Corn voted against, saying both project proposals should go before voters directly. 

Much of the court’s emphasis during discussion was on the urgency for the projects, from the added safety for the public with transporting inmates inside the judicial center, to the economic benefits associated with the arena.  Commissioners also focused on the added cost burden that the county expects to face if it waits to move forward by calling an election instead of issuing the COs.

County Judge John Durrenberger said the county has spent many years discussing these items and that this is “not a snap judgment by any means.”  Referencing the previous presentations from Garry Kimball of Specialized Public Finance, Washington County’s financial advisor, he said a delay in proceeding would mean that anticipated interest rate hikes and escalating construction and infrastructure costs likely tack on several millions of dollars to the total cost.

The county could receive funding from a CO issuance later this year, but proceeds from a bond would not come in until 2027.  If the bond election failed, the county would be locked out of issuing COs for that project for three years. 

The estimated tax rate increase for both projects would be $0.0395, while the rate would go up $0.0260 for just the judicial center.  Durrenberger noted that many qualifying homeowners age 65 and older would see little or no increases to their homestead taxes, because of the senior homestead exemption and tax ceiling.

Commissioner Candice Bullock said the court’s biggest role is fiduciary responsibility and that the right decision is to avoid spending additional money on a “non-negotiable”.

Hartstack Corn agreed that the judicial center is a major need and that the arena can act as an economic driver, but she is uncomfortable with putting $61 million on a “credit card” without voter approval.

Among those who spoke from the public on the matter were Sharlie Douglass, who is involved in an effort to gather voter signatures for a petition to put the items on the ballot.  She said she is not arguing against the validity of the projects, but stated that voting is paramount to community involvement.  Douglas Borchardt also agreed on the need for the justice center and added, from his experience on the Blinn College Board of Trustees, that the cost increases spoken of are very real.

Commissioner Kirk Hanath said he was initially of the mind to go to an election, but acknowledged with the new financial information presented recently that it would not be fiscally conservative to go that path.  He said both projects are important, and at least for the judicial center, it makes more sense to go the route of COs.

Commissioner Dustin Majewski said if the arena appears to be the most controversial portion of the package, the county should go ahead and proceed with the reduced CO number for just the judicial center and figure out the arena separately. 

The reason for today’s meeting was because Specialized Public Finance needed an official proposed issuance amount to prepare bond offering documents.  Commissioners will meet on August 11^th to formally decide on issuing the COs for the judicial center, with a separate item to come regarding the calling of a bond election for the arena.

Click here to view the YouTube recording of Monday's meeting.