Laserfiche WebLink
<br />~r;,c~ <br />(f( 179Z ~ <br /> <br />Office of the County Manager <br /> <br /> <br />::mo Board of Commissioners c;lJ <br />From: John Day, County Manager <br />Date: May 8, 2006 <br />Re: Financing Options for the Jail Annex and Sheriff's Office and Detention Center <br /> <br />The Board established the use of certificates of participation (COPs) as the financing <br />method for the Jail Annex and Sheriff's Office and Detention Center project in the capital <br />improvement programs (CIP) in the 2005 and 2006 budgets. Accordingly, the staff has <br />taken measures to implement the Board's decision, culminating in the inclusion on this <br />month's agenda of a resolution authorizing the filing of an application for the issuance <br />COPs <br /> <br />Recently, however, Board members have discussed the possibility of financing the Jail <br />Annex with COPs and financing the Sheriff's Office and Detention Center project with <br />general obligation (GO) bonds. Below is a description and comparison of the various <br />financing options available: <br /> <br />1. Proceed as previously planued. Approve the COPs resolution, as attached, <br />authorizing the issuance of a sufficient amount of debt to construct the Jail Annex, <br />Sheriff's Office and Detention Center. Under this option, COPs would be sold <br />after the Board approves an amendment to the Turner Construction contract <br />specifying a guaranteed maximum price for construction of the jail annex. The <br />Local Government Commission (LGC) will only allow the issuance of COPs in <br />an amount equal to that of the contract. <br /> <br />The remaining COPs could only be issued after the Turner contract is amended <br />once again by the Board in September to reflect a new guaranteed maximum price <br />that includes the Sheriff's Office and Detention Center. Again, the LGC will only <br />allow the issuance of COPs in an amount equal to that ofthe contract. <br /> <br />There will be no delays in construction for the jail annex, Sheriff's Office or <br />Detention Center caused by employing this financing option. The County would <br />also not be exposed to rising interest rate risk as a result of this option. <br /> <br />c- \ <br /> <br />~'-~ <br />~ <br />NORTH <br /> <br />* <br /> <br />Cabarrus County. 65 Church Street, SE . Post Office Box 707 . Concord, NC 28026-0707 <br />Phone: 704-920-2100 . Fax: 704-920-2820 . www.cabarruscounty.us <br />