$16M bond issue in planning stage

DESOTO COUNTY - DeSoto County Supervisors Monday voted to allow financial adviser Demery Grubbs to begin the paperwork for issuance of at least $16 million in general obligation bonds.

The bond could be used for a wide range of county improvements, from a new justice complex to road improvements.

No decision has been made as to when or how to spend the money if bonds are issued.

Supervisors likely will not vote on whether or not to issue the bonds until next month's meeting. Grubbs will bring the paperwork back before supervisors and another board vote will be necessary before bonds are issued. Any projects would be initiated after that time.

District 3 Supervisor Bill Russell said the justice complex committee is still at least a month away from making its recommendations public.

"The jail population is down," Russell said. "I don't know how long that is going to last. It's gotten to a point, we can't wait any longer."

Russell said even though the number of inmates is down, he is still concerned that the jail must house mental patients if they can't be transferred to an appropriate mental health facility.

DeSoto County Sheriff Bill Rasco said he could not publicly comment on plans for the justice complex but he said county officials simply have to do something about the housing of mental patients at the jail.

"We're just not equipped to do that," Rasco said. "It costs a lot to house those people. When you're not equipped to handle them, it puts a strain on us."

DeSoto County Administrator Michael Garriga said the jail complex was placed on the back burner earlier this year due to two main reasons.

"The jail paradigm has shifted," Garriga said. "There has been some backlash for an off-site facility. Coupled with the fact there was a backlash and the jail numbers have declined significantly with the city jail contracts, we may do something else. If the public doesn't want it (off-site jail), we won't have it."

In the interim, county officials negotiated a $20 per day per inmate contract fee, plus medical costs, with the five cities in DeSoto County to house inmates. The move was a bid to decrease the jail population and defray costs.

Garriga said county officials could add on to the existing jail site and possibly build a stand-alone mental facility or contract with some other health facility. There has been no firm decision made.

At least three major road projects could benefit from the $16 million bond issue, including DeSoto Road, Getwell Road (between Church and Pleasant Hill) and Star Landing Road.

Also Monday, Grubbs said DeSoto County's excellent bond rating would allow for a low interest rate to finance the bonds.

Grubbs also said that DeSoto County can issue up to $16 million in bonds without a tax increase for county taxpayers.

Grubbs said the board could come back and issue another series of $5 million or $6 million if officials desired to do so.

Grubbs said DeSoto County is very attractive to those buying bonds due to its high bond rating.

DeSoto County presently has an AA bond rating.

Grubbs said interest rates are lower for entities with good credit. Grubbs said the market is favorable for AA general obligation bond issues in general.

DeSoto County has more than $86 million in needs, according to an earlier analysis.

However, supervisors have acted conservatively in light of the ailing national economy by not accruing any more debt than is absolutely necessary.

A year ago, DeSoto County Supervisors approved a $45 million resolution of intent to issue bonds, which is effective for a two-year period. That $16 million is a part of the total $45 million.