photo by: Journal-World

The west side of the Douglas County Courthouse, 1100 Massachusetts St.

Citing financial market concerns, Douglas County will delay a $55 million bond sale for funding the renovation of the Judicial and Law Enforcement Center and the construction of the new Public Safety Building.

On Wednesday, county staff will share with commissioners the plan to postpone the sale of bonds for funding the Judicial and Law Enforcement Center and the Public Safety Building project. Commissioners previously authorized an approximately $55 million bond sale – a type of debt – to support the projects in April. However, county staff now says the sale will be delayed due to concerns from the county’s bond pricing group that there would not be enough interest from institutional investors to secure the best deal for the county, according to a memo in the agenda.

In addition, if the county proceeded with the sale now, the project could cost more in the long run. The county would likely have to pay higher interest rates – potentially 0.15% to 0.20% more, according to the memo.

Bond financing enables the county to secure funds for long-term infrastructure projects by borrowing money through the issuance of bonds to investors. These bonds will be repaid over time with interest. According to county staff, the projects will be funded without increasing taxes for residents. In addition to using $55 million in bonds, Douglas County has set aside $25 million in cash reserves for the construction as well.

The Associated Press reported that the U.S. bond market has become volatile since President Trump introduced his tariffs. For example, U.S. Treasurys experienced a wave of mass selling — a large number of investors sold their Treasury bonds at the same time. This resulted in the yield on the 10-year Treasury bond rising from 4.01% to 4.58% in just one week.

This has also led to a similar increase in municipal bond yields as investors are closely monitoring the risk of a recession and the federal fiscal policies. This heightened risk perception can lead to increased demand for higher yields, and it can further raise borrowing costs for local governments.

In addition, the memo to county commissioners states that the Federal Open Market Committee is set to make an announcement on Wednesday which could impact interest rates, but most experts think the Fed will leave the rate unchanged.

Douglas County has received an Aa1 credit rating from global financial services company Moody’s, which is the second highest credit rating Moody’s assigns. This means the county is considered to have a strong ability to meet its financial commitments. According to a memo, the debt levels will remain manageable even after issuing new bonds. The adjustment of the sale date will not impact the county’s rating.

The JLEC building, which houses the District Court, District Attorney’s Office, emergency communications, Sheriff’s Office, IT department, and maintenance staff, will be expanded on its south side to add more courtrooms, judges’ chambers, conference rooms, and other essential facilities. The Public Safety Building, located near the Douglas County Jail, will serve as the central hub for the Sheriff’s Office, 911 dispatch, and emergency management operations.

A revised notice of sale will be published on May 15 with a public sale scheduled to occur on May 21, according to a memo in the agenda. The new closing date for the bonds will be on June 11.

In other business, county commissioners will:

• Consider approving a one-year site plan extension for Veritas Christian School to construct an expanded parking area to accommodate participants, coaches and spectators attending sports activities at their existing sports facility at 960 East 1296 Road in unincorporated Douglas County.

The school decided not to move forward with building classrooms on the site after discovering a flowage easement, a legal restriction tied to potential flooding that complicates construction. This issue was not identified in the original plans and caused delays in completing the classrooms in time for the school year. As a solution, the school leased classroom space at River City Church in Lawrence, where it continues to hold academic classes.

The extension is needed because the original site plan approval is expiring, and the school lacks sufficient parking for sporting events held at the gymnasium, according to a memo in the agenda.

• Consider authorizing county staff to accept the 2025 S.T.O.P. Violence Against Women Act federal grant funding in the amount of $31,145. The grant supports the salary and fringe to maintain the part-time advocacy and outreach specialist, who follows up with domestic violence victims after law enforcement contact and refers them to various services, at the Douglas County Sheriff’s Office.

According to a memo in the agenda, the total position costs $41,527, with 75% coming from federal funding with a 25% non-federal match.

• Consider approving a $1,000 payment to compensate a landowner for tree loss related to a Public Works department project to replace a culvert on North 100 Road in Willow Springs Township.

The County Commission’s business meeting will begin at 5:30 p.m. Wednesday in the Douglas County Commission meeting room at 1100 Massachusetts St. The meeting will also be available via Zoom.