Polk increases jail project budget ordinance by almost $600k
Published 10:00 pm Thursday, August 11, 2016
COLUMBUS – The Polk County Board of Commissioners increased its project budget ordinance by almost $600,000 this week after adding all phases of architectural fees and costs for a financial advisor.
Commissioners met Monday, Aug. 8 and unanimously approved the new project budget ordinance in the amount of $2,999,950. The previous project budget ordinance was approved in late May for $2,408,282.
After taking the item off the consent agenda for a discussion at the suggestion of commissioner Ray Gasperson, county manager Marche Pittman said the budget amendment was essentially to extend the architectural fees. Pittman said the county had budgeted the funding of phase I of the architectural fees but the new ordinance will include all phases. The new ordinance also includes an additional $25,000 for the county to retain a financial advisor to aid with the N.C. Local Government Commission (LGC) application in order to acquire a loan for the total project.
Pittman said the financial advisor will ensure the county gets the LGC application right the first time, “which is essential when you’re dealing with the LGC,” and also to get better interest rates on the loan.
The new project budget ordinance includes architectural fees of $849,950, land acquisition of $2,075,000 and professional fees of $75,000 (including the $25,000 for a financial advisor).
Commissioners cannot approve a final project budget ordinance for the new jail until bids are accepted for the construction.
Commissioners also discussed the upcoming schedule for making an application to the LGC for a loan. Counties must be approved by the state’s LGC prior to taking out major loans, such as for the new jail. The construction bid has been estimated to be approximately $11 million.
On Monday, Gasperson asked if the county is getting close to applying to the LGC.
Pittman said he expects the county will schedule a public hearing on the financing and to set the limit on the financing at the next meeting, scheduled for Aug. 22. The public hearing could be held sometime in September for comments on the final project budget ordinance.
“Everything seems to be falling into place,” Pittman said. “I’m very confident in the schedule and the timeline.”
Finance officer Sandra Hughes said the county will be setting a resolution of findings, not in excess of a certain amount for the final budget ordinance. Gasperson said a prime example of a project budget ordinance was for the department of social services building. The county set a budget ordinance of $2 million and had expenses of $1.8 million.
“That resolution of findings has to be the maximum,” Hughes said.
Commissioners decided to have more discussion about the terminology and the schedule of the LCG application at its next meeting.
Commissioners recently agreed to purchase a total of almost 22 acres to construct a new detention center and sheriff’s office with plans in future years to construct a new courthouse on the same property. The county purchased 19.19 acres in recent months that was formerly Milliken property, with access off Hwy. 108 just outside Columbus town limits. The county also purchased 2.6 acres off Park Street in Columbus that borders the larger parcel.
In July, commissioners announced that the 19.19 acres was under contract. The county also approved a new government and public facilities zoning district for the property in July.
The purchase of the 19.19 acres at a price tag of $1,950,000 included site preparation of the property, including clearing, grading, roads, curb and guttering and building pads. The site preparation of the property has begun. The county is now awaiting construction bids to be returned.