Mon, Nov 23 2009
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Published July 08, 2009 11:12 am - The county continues to inch closer to construction of the new Barren County Correction Center. Jail committee considers bonding options By AMBER DILLEY Glasgow Daily Times GLASGOW — The county continues to inch closer to construction of the new Barren County Correction Center.
Before Tuesday’s fiscal court meeting, the jail committee met with representatives with financing firm Ross, Sinclaire and Associates to discuss two possible bond plans for the project. The first option is the traditional tax exempt bond, what an entity like a county would normally use to finance a building project. The second option involves the stimulus funds. “The Build America bonds allow entities such as yourselves to issue taxable bonds, which would give you a greater pool of investors and possibly a better rate on those bonds,” explained R.J. Palmer, a representative from the firm. The Build America bonds use stimulus funds where the government rebates the entity on the bond. “What you do is issue the taxable rate and the federal government gives you a rebate on a percentage of that rate,” Palmer said. “Over the 20-year bond period, that would save the county approximately $457,000. It’s a new tool in our toolbox, so to speak.” The firm has already implemented the bonds with a client in South Carolina and “the results have been good.” “It was a very large project and this saved them about $4 million over the life of their bond issue,” Palmer said. The only hang-up that concerned the magistrates and Judge-Executive Davie Greer was the fact that the county will have to appropriate all of the money into the budget. “You have to put more debt service money in your budget, but you aren’t paying as much,” Palmer said. “They give you a direct payment back. They want you to be fully covered and I suppose you could make the argument that somewhere down the road, Congress could take this away, but I can’t imagine them doing that.” Magistrate Carl Dickerson asked if there would be any strings attached to the rebates. “No, this is part of the stimulus plan,” Palmer said. “If you have federal dollars aside from the rebate, like a grant, you would be subject to the rules on that, but with the rebate, there are no strings.” The committee and Palmer brought the options to the court, but no decision was made on which to choose. Meanwhile, the 36-year-old jail that sparked the decision to rebuild is being slowly brought up to date. 
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