County to appoint special building board
Staff reporter
Marion County Commission took the next step Monday in preparation of asking constituents to consider passing a bond issue for a new jail.
Via teleconference, the commission heard suggestions from bond counselor David Artebury of George K. Baum Company and Jon Small, bond attorney regarding a public building commission.
"This structure would allow the county to use both — sales and property taxes — to fund a building project," Artebury said. He further explained that by creating the PBC, the county wasn't "locking in" to do anything.
The various documents were reviewed that include a resolution and bylaws. It was suggested the board consist of seven members. One or all three county commissioners could serve on it. It would be a stand-alone entity that would align with the commission.
When the PBC is established, the PBC would actually own the proposed jail facility with the county leasing from it. The county would make bond payments to the PBC which would go to a trustee bank. The bank then would disperse the proceeds to the bond holders.
The PBC would be responsible for monitoring the construction of the project and approve and monitor all bills. When the project is completed, the group's involvement would be minimal.
This type of pass-through agency is a popular alternative because counties do not have a high borrowing capacity for general obligation bonds. This allows another entity to actually borrow the funds and the lease arrangement is not subject to annual county appropriations.
Artebury explained that the PBC bonds sell similar to general obligation bonds.
Small clarified that the county commission would appoint all PBC members. He continued that there is no protest period for the creation of the PBC but there was one for issuing bonds.
He suggested the commission proceed with the following steps of adopting a resolution to create the PBC, select and appoint members, have an organizational meeting to review bylaws, and issue resolution for bylaws.
An independent feasibility study is being conducted by to determine the appropriate direction for the county to take and how to finance it.
The PBC can remain in place if the bond election fails or when the jail project is completed.
Commission chairman Randy Dallke said he would like the PBC to look at all county building issues. County clerk Carol Maggard said the PBC was specifically geared for financing new projects.
