photo by: Kim Callahan/Journal-World

The Douglas County Judicial and Law Enforcement Center is pictured on Sept. 4, 2024.

Douglas County commissioners this week will consider using less debt and more cash to fund an $82 million project to expand the Judicial and Law Enforcement Center and construct a new Public Safety Building.

On Wednesday, county commissioners will consider directing county staff to prepare for an approximately $55 million bond sale — a type of debt — to finance the Judicial and Law Enforcement Center project and the development of the Public Safety Building. That $55 million number is down from previous plans that called for the county issuing $60 million in bonds for the projects.

The County Commission previously approved a budget of nearly $82 million for the projects in December. With the new debt plan, Douglas County would be increasing the amount of money it pulls from its cash reserves by $5 million. If approved, the county would use $25 million in cash to help pay for the project. Previous plans called for the county to use $20 million in cash for the project.

To fund the projects, the county is utilizing bond financing, a form of long-term debt that local governments use to generate funds for infrastructure that lasts for many years. By issuing bonds to investors, local governments can finance these projects and repay the borrowed amount with interest over time. County officials have stated that this project will not require a tax increase for Douglas County residents.

In February, as a part of closing out fiscal year 2024, commissioners approved an additional transfer of $9 million to the capital improvement program fund. County staff are interested in adjusting the debt incurred and increasing the amount of cash available by using some of the funds from the CIP transfer.

If the county increases the amount of cash it uses for the project by $5 million, it would reduce the amount the county would have to pay in interest costs over the life of the bonds. County staff said in a memo to commissioners that the $5 million cash infusion would produce an estimated savings of $1.2 million in interest over the 20-year loan term and would lower the county’s average annual debt service payment by about $200,000, according to the memo in the agenda.

Devoting an extra $5 million in cash to the judicial and law enforcement project, however, would give the county less cash to spend on other infrastructure projects. The county, historically, has not used debt very often to pay for infrastructure projects, but rather has paid for construction with cash reserves. The county’s Capital Improvement Plan fund had about $47 million in it in February, county officials said at that time. If the county uses the CIP fund to provide all of the $25 million in cash for the judicial and law enforcement project, the fund would still have a balance of about $22 million in it to use for future projects in future years.

As the Journal-World reported, the JLEC portion of the project is projected to cost $52,509,198, while the Public Safety Building is estimated at $18,990,584. The remaining budget covers costs for furniture, fixtures, equipment, and unforeseen expenses.

The JLEC building, currently home to the District Court, District Attorney’s Office, emergency communications and management offices, Sheriff’s Office, IT department, and building maintenance staff, will undergo an expansion on its south side. This expansion will provide additional space for more courtrooms, judges’ chambers, conference rooms, and other vital facilities. The Public Safety Building, located adjacent to the Douglas County Jail, will serve as the central hub for the Douglas County Sheriff’s Office, the 911 dispatch center, and the county’s emergency management operations.

The next step for the bond issuance is a resolution to authorize the sale on April 9. Commissioners will award the sale of the bonds on May 7 and receipts of proceeds and a settlement of the bonds will be available on May 28.