Photo by Sue Watson
E.J. Gregory and Lynn Norris, with Duncan-Williams, discuss possible financing plans for the expansion of the Marshall County jail.
County supervisors look at financing of jail expansion
E.J. Gregory and Lynn Norris, government consultants with Duncan-Williams, recently brought several plans for financing the expansion of the Marshall County jail before the board of supervisors.
They proposed structuring the debt for the jail expansion to a proposed cost of $6 million. The plan was based upon keeping a mill rate of 1.77 to bring in $260,054 and the levy would be unchanged for the first five years. The levy could go up perhaps a half a mill, if needed, the second 10 years of the bond. If growth occurs, it could defray the millage needed in the second part of the bond.
Norris said additional items that the jail will need after the expansion – cots, mattresses, and bedding – could be wrapped in with the financing so the county would not have to take money out of the general fund to pay for those supplies.
The figures are based on a projection of no growth.
Chancery clerk Chuck Thomas asked if the board authorized a resolution of up to $6 million by October 2, the net would be $5.6 million in bonds, with spending up to 2 percent for extras like bedding.
Gregory said the maximum that could go to ancillary funding would be 7 percent.
He said the 1.77 mills assessment was used as a scenario of adopting a levy on bonds that would have been set September 20. The scenario assumes no growth. If no growth takes place, the county could be required to go up a bit on the millage, he said.
A second scenario could be set up to have $4 million revenue to go to the project, Gregory said.
The plans presented would hold for a short period of a few days.
The Mississippi Development Bank would be used to structure the debt because it has more flexibility, he said.