SCOTT COUNTY EYES NEW JAIL FINANCING

BENTON -- Scott County commissioners learned Tuesday it will cost about $1 million over eight years to finance building a 110-bed county jail.

That includes the interest and bond issuance and insurance costs for jail construction estimated at $4.3 million.

Commissioners met with Thomas Moriarty of St. Louis and Charles Zitnik of Kansas City, representatives of the public finance section of Stern Brothers & Co., an investment banking firm.

"We're trying to get educated on what we would need to know if the sales tax passes," presiding commissioner Bob Kielhofner said.

Scott County voters will decide April 4 whether to approve a 0.25 percent sales tax to build a new jail. The additional tax would amount to 25 cents on a $100 purchase.

Scott County voters are also being asked to approve a separate measure for the same amount to provide funding for law enforcement services.

If the tax for a new jail is approved, collections would begin Oct. 1. With a projected 4 percent increase in sales tax revenues over the following 12 months, receipts in the first year are estimated at $704,000.

In making his presentation, Moriarty projected sales tax receipts would increase each year thereafter at a rate of 4.25 percent. In the 12 months ending on Sept. 30, 2003, sales tax revenues are projected to be $942,000.

Kielhofner said it's hard to imagine that the 0.25 percent proposal would generate that much funds in eight years. However, Moriarty said the 4.25 percent rate of increase was conservative based on Scott County's previous years.

Receipts from a sales tax to build a jail in the eight-year period are projected at $6.548 million. At an estimated average interest rate of 6.14 percent, that's enough to fund a $4.975 million bond issue, Moriarty projected.

Moriarty said the plan is to match projected revenues to the construction and financing costs. He told the commissioners a new jail, because of its institutional nature and necessary construction requirements, would cost between $105 and $120 a square foot.

Moriarty said coordinating the planning, financing and construction of a new jail will lead to a successful project. He estimated that construction would take more than a year.

Moriarty suggested the commission put the jail plans together immediately. County voters will want to know the proposed size of the jail and its costs before they vote in seven weeks.

Kielhofner said it might be better for the county to start with a smaller jail, like 75 to 80 beds, that could be expanded later. The common areas in a smaller jail could be built to handle the larger scale.

Kielhofner also said the circuit judge has suggested a 130-bed facility, which is projected to handle the county's prisoner population growth for about 50 years.

Moriarty suggested the commission hire an architect who has completed several successful jail projects. The expert architect could then subcontract with other area professionals for some of the work.

Kielhofner said he would feel "out of bounds" if the commissioners did not talk to area architects and contractors about building the proposed jail. He would like to use architects and engineers from the local area or at least those from Missouri.

Moriarty asked that his firm be considered for handling the financing on the project. Kielhofner said he would also be talking to other area bankers about financing the project.

As one of its first steps to provide information on the project, the three commissioners are meeting with the Sikeston Chamber of Commerce for breakfast today at 7:30 to answer questions about the jail proposal.