9/12/1984 (2) - Laserfiche WebLink

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MOTION WAS MADE by Commissioner Lyons, SECONDED by Commissioner Bowman, to approve a tentative budget of $1,416,211 for the 1980 and 1981 Bonds for the fiscal year 1984-85. Commissioner Wodtke asked what the $75,000 listed under Local Sources represents, and Director Barton stated that is interest income. These bonds will be paid off in the year 2010. OMB Director Barton continued that these bonds include the cost overruns for everything associated with the renovation of the Administration Building as well as the Courthouse. The total borrowing originally was $5,087,000. Commissioner Bird asked if we are going to pay 1.5 million each year until 2010 to pay off a five million dollar loan. The OMB Director stated that actually we are paying $519,000, and the Administrator explained that we have to main- tain a large cash reserve that generates the interest up until the bonds are paid off. Chairman Scurlock believed that this highlights just exactly what it costs to go long term on any kind of bond issue, and that is why the Finance Advisory Committee recommended the 1� sales tax for the jail, which would represent about a 40% saving. Commissioner Wodtke asked if the cash carry forward will go down each year, and Director Barton replied that it would not; there is a fixed amount in the cash carry forward that is the single largest principal and interest debt payment due. This is the fund we had two different monies mixed in, and we got the opinion to take out the one, which is one of the reasons it shows a reduction. In 1980 when we set this fund up and started trans- ferring the $446,500 from Race Track Tax from the State, we did not have to transfer the full $446,500 to make the payments, but we did. We got a ruling that we legally were allowed to take out the excess we had paid in those two years, and that is where the $110,000 for the fourth courtroom comes from. 20 BOOK 58 P';F 3