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Chisago County Board Approves Public Safety Center – Phase II Financing Plan with NO Levy Increase
March 16th, 2016
On Wednesday, March 16th, 2016, the Chisago County Board of Commissioners approved a financing plan for construction of Phase II of the Public Safety Center, to include NO increase in the annual tax levy.
The Commission voted 4-1 (Commissioner Walker dissenting) to remove a potential 1% levy increase from the proposed financing plan. See below to review the approved Project Funding scenarios and Financing Plans.
Funding for the $24 million project is anticipated to come from existing County Reserves, already-expended or planned use of County Program Aid (CPA) dollars received from the State of Minnesota, requested assistance from the State of Minnesota (bond dollars), and issuance of General Obligation Bonds (i.e. borrowing).
Financing to repay borrowed funds plus interest is anticipated to come from annual savings in the County Sheriff’s budget from not having to transport inmates to and from other jails in other counties ( ? $500 thousand annually), use of currently-available but unallocated CPA dollars ( ? $500 thousand annually), and roll-over of existing funds used for debt payments, once past debt has been retired.
Advantages of this financing plan include: No increase in the County’s annual tax levy for this construction project, long-term savings via operation of a new and more efficient Public Safety Center, lowest-possible borrowing costs, and structured and manageable debt payments for the County for the foreseeable future.
Disadvantages of this financing plan include: Unavailability of CPA dollars for other capital improvement projects, possible volatility in interest rates or the larger economy, locked in annual payments for construction of the new facility, and continued debt payments for the County for the next 20-years.
For more information, contact the Sheriff Rick Duncan at the Chisago County Sheriff’s Office at (651) 213-6300.
Finance Plan Approved
Chisago County 0.5 % Transit Sales and Use Tax
Starting April 1, 2016, Chisago County will have a 0.5 percent transit sales and use tax. The Minnesota Department of Revenue will administer this tax. Revenues will fund the projects identified in the 2016 – 2020 Chisago County Transportation Improvement Plan identified in Resolution 15/1118-3.
General Notice Chisago County