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Jail expansion, new annex construction in county’s future

By LYNETTE SOWELL 

Cove Leader-Press 

 

After a failed bond election and more discussions to include those by a county facilities committee, Coryell County officials are moving forward with a jail expansion project as well as construction of the Leon Street Annex. 

Coryell County voters said an overwhelming “no” in May 2021 to a proposed $30.9 million facility with a 20-year bond by a wide margin.

At Tuesday’s meeting of the Coryell County commissioner’s court, commissioners selected a funding option that would involve taking out bonds for both expanding the jail and building a new annex.

Prior to the vote, the court heard a presentation from Specialized Public Finance regarding the possible bond note options as well as the impact to the property tax rate on a seven-year note.

There were several options provided to the commissioners, some of which included contribution of upfront payments of the county toward the projects. 

Option 1 included the jail expansion only, for $4.9 million and no cash buy-down contribution from the county. It had a projected 2.2 cents added to the tax rate over the seven years, at a 4 percent interest rate. 

The Specialized Public Finance rep called it a “cushion” built into the option, because they don’t know what interest rates will be at the time the firm goes out for bids on the note.

The second option was to construct the annex only, an $8.7 million project, with the county contributing $6 million in funding for it. That amount would involve a rate of 1.2 cents for the seven years.

Option 3 included a combination of the jail expansion plus annex construction, with a note of $13.6 million, and the county contributing a $6 million buy-down for the note. This combined note would increase the rate a project 3.4 cents over seven years.

There was also an option 3b, which commissioners voted to approve.  

This is a $13.6 million note, with the county contributing $7 million as a buy-down, and would mean a 2.9 cents additional to the tax rate over seven years.

The projected tax rate impact is based on current property tax values.

Coryell County Judge Roger Miller explained the source of the funds which the county will be using to help fund the new annex. 

With Coryell County using $6 million of its American Rescue Plan Act funding toward county law enforcement, that means there was an additional $6 million in the general fund. This was earmarked for new construction. The county also identified $2 million in funding for broadband.

On Tuesday, the commissioners chose to move $1 million from broadband and add it to the new construction fund, something with which Miller did not agree, but the commissioners voted unanimously in favor of. 

However, he said that they were able to dedicate the $7 million in funds due to the ARPA funding they’d received.

Once completed, the Annex will house county Justices of the Peace for Precincts 3 and 4, the 440th District Court, Precinct 3 and 4 Constables, the Game Warden, and the Special Investigator for the Cattleman’s Association. Previously referred to as the “justice center,” the facility will be known as the Leon Street Annex.

According to the proposed timeline, Specialized Public Finance will bring back a lineup of lenders with notes and an interest rate by the court’s Feb. 14 meeting. 

The commissioners will then have the option to vote on a lender of their choosing. 

Closing on the note could be as soon as March 15. 

The note would become part of the fiscal year 2024 budget, and payments would begin by Feb. 15, 2024.

The commissioners also voted to approve Southwest, Architects, Inc., to submit jail expansion plans to both the Texas Jail Commission, as well as to the City of Gatesville for building permits, and to add the line item amendment to the county’s capital improvement pojrects as well as approving the tax note to fund both the jail expansion and the new annex.

The expansion plan is in keeping with the county’s efforts to ease the high bill for housing inmates outside of Coryell County, which is just over $1.5 million for the 2022-2023 fiscal year’s budget. The expansion is also part of the plan to address the jail’s state compliance issues.

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