Analysis of Jail Funding Approaches
City of Portsmouth, Virginia

January 14, 2020

Member NYSE FINRA SIPC

  

 

Background and Executive Summary

 

DAVENPORT 8: COMPANY

 

January 14, 2020 1

Background
Davenport & Company LLC (“Davenport”) has been tasked by the City of Portsmouth (the “City”) to undertake an
analysis of potential approaches for meeting the City’s long-term Jail needs.

In performing this analysis of potential Jail Funding Approaches, Davenport has reviewed:
– Financial statements of the City and Hampton Roads Regional Jail Authority (“HRRJA”);
– Budget information provided by the City and HRRJA;
– Service Agreement between HRRJA and its Member Jurisdictions (or “Members”);
– Jail Cost Reports as compiled by the Compensation Board; and
– Other financial and statistical data related to the City’s Local Jail and HRRJA.

Davenport has analyzed three potential scenarios for meeting the City’s long-term Jail needs as follows:

Scenario 1

“Status Quo”: Build a New Local Jail to replace Existing Local Jail; continue to use HRRJA
under contractual agreement

Scenario 2

Close the Local Jail Facility and use HRRJA for all Jail Needs; City pays 100% of
Incremental Costs incurred by HRRJA for providing all jail services for the City

Scenario 3

Close the Local Jail Facility and use HRRJA for all Jail Needs; Incremental Costs incurred
by HRRJA for providing all jail services for the City are shared amongst all HRRJA Members

January 14, 2020

2

 Executive Summary
Currently, the City meets its Jail needs as follows:
– Existing Local Jail, built in 1969 with a Department of Corrections (“DOC”) rated capacity of 288 beds; and
– Participation as a Member Jurisdiction in the HRRJA with the ability to send a guaranteed number of inmates (up
to 292) based on a formula driven pricing structure.

Based on the City’s Unaudited Actual FY 2019 financial data, spending for the Sheriff’s Department totaled $11.6
Million, or $106.15 per inmate/day (assuming 300 inmates).

Based on the 2014 HRRJA Service Agreement, the City is responsible for paying for a Guaranteed Capacity of 250
inmates at HRRJA, whether or not the City sends 250 inmates.
– Based on the FY 2021 HRRJA Budget, the City’s Appropriation (i.e. cost) for 250 inmates is $7.2 Million or
$78.45 per inmate/day; and
– In addition, the City can send another 42 inmates to HRRJA at a reduced cost of $40.00 per inmate/day.

The City’s Average Daily Population (“ADP”) of inmates has trended downward in recent years from 715 total
inmates to 380 total inmates (combined Local Jail and HRRJA).
– The City has estimated its inmate population to approximate 300 on a going forward basis.

January 14, 2020

3

 Executive Summary

According to City staff, if the City were to keep a local jail open and in operation for housing inmates, the
construction of a New Local Jail Facility would be necessary due to the age and condition of the Existing Local Jail.
– The estimated cost of a New Local Jail Facility is estimated to be $47 Million(1) and would result in an
approximate $41.2 Million financing need assuming the Commonwealth provides a 25% reimbursement of
eligible costs; and
– The resulting annual debt service on the above approximates $2.6 Million per year for 30 years.

If the City closes its Existing Local Jail and the HRRJA became a full-time jail for the City, then additional
Incremental Costs(2) for staffing, transportation (estimated at $1.6 Million) and healthcare (estimated at $1.5
Million) would be incurred by HRRJA and potentially be allocated directly to the City.
– To the extent that these costs are allocated amongst the other Member Jurisdictions, the City would achieve a
greater benefit from cost sharing.

The City has indicated that no holding facility(3) would be necessary if the Existing Local Jail were closed.

(1) See Exhibit 1 for assumptions estimated bond size and annual debt service payments.
(2) Incremental Cost assumptions provided by HRRJA.
(3) Used for inmates during court and typically is necessary when local jails are closed and all inmates are housed in a regional jail facility.

January 14, 2020

4

 Executive Summary
The table below shows the proforma Scenarios evaluated by Davenport in comparison to the FY 2019 Unaudited
Actual City and Budget HRRJA costs.
Scenario 11
Scenario

Scenario 22
Scenario

(2)

(2)

Prof orma

Prof orma

"Status Quo"

FY 2019

Local Appropriation (Sheriff's Budget Net of
Compensation Board Revenues)
2 Local Jail Utility Cost
3 HRRJA Contractual Cost (250 inmates)
4 HRRJA Contractual Cost (42 inmates)
1

5
6

(3)

Outsourcing Cost for 8 inmates
HRRJA Incremental Cost

(4)

(5)

Debt Service
8 Total Cost
9 Increase (Decrease) vs Scenario 1
10 Increase (Decrease) vs FY 2019
7

(1)

Close Local Jail

Scenario 33
Scenario
(2)

Prof orma ( 2 )

Close Local Jail

Build New Local Jail

Use HRRJA

Use HRRJA

Use HRRJA

City pays 100%

Incremental Cost

Per Contract

Incremental Cost

Shared

$5,502,119

$5,502,119

$1,273,702

$1,273,702

240,000
5,881,063
0

240,000
7,158,563
0

0
7,158,563
613,200

0
7,857,540
613,200

0

0

116,800

116,800

0

0

3,145,396

0

0
2,605,133
62,215
62,215
$11,623,182 $15,505,815 $12,369,876
$9,923,456
NA
NA ($3,135,939) ($5,582,359)
NA $3,882,633
$746,694 ($1,699,726)

11
12
13

Assumed Inmates
Per Inmate/Day

300
$106.15

300
$141.61

300
$112.97

300
$90.63

(1) FY 2019 Sheriff's Budget is Unaudited Actual number; Local Jail Utility Cost is estimate provided by the City; HRRJA Contractual Cost is FY 2019 Budget.
(2) Sheriff's Budget is based on FY 2019 Unaudited Actual number; Local Jail Utility Cost is estimate provided by the City; HRRJA is based on FY 2021 Estimate.
(3) Outsourcing cost of 8 inmates @ $40 per diem.
(4) HRRJA Incremental Cost assumed to be shared in Scenario 3 and the City's proportionate share is included in line 3.
(5) Scenario 1 assumes $47 Million facility and 25% reimbursement of DOC eligible costs; Scenarios 2 & 3 assume $360,000 cost ($450,000 less 20% upfront)
amortized over 7 years at 5.0%.

January 14, 2020

5

 Executive Summary

Based on the assumptions and analysis herein:
– Scenario 1 (“Status Quo”: Build a New Local Jail to replace Existing Local Jail; continue to use HRRJA under
contractual agreement) is the most expensive option for the City and results in an estimated $3.9 Million
expenditure increase versus FY 2019 levels.
– In addition, financing a New Local Jail in Scenario 1 would breach the City’s Debt Policy Guidelines and threaten
the City’s strong credit ratings.
• In Scenarios 2 & 3 (Close the Local Jail Facility and use HRRJA for all Jail Needs), the City remains in
compliance with its Debt Policy Guidelines.
– Of all Scenarios analyzed, closing the City’s Existing Local Jail and using HRRJA for all of the City’s jail needs(1) is
the most cost effective means of serving the City’s inmate population as shown in Scenarios 2 & 3.
• If the City pays 100% of the Incremental Costs of HRRJA, Scenario 2 is estimated to be $3.1 Million LESS than
Scenario 1 and $746,000 more than FY 2019 levels.
• If the City could benefit from sharing the Incremental Costs of HRRJA with the other Member Jurisdictions,
Scenario 2 is estimated to be $5.6 Million LESS than Scenario 1 and $1.7 Million LESS than FY 2019 levels.
• Scenarios 2 & 3 are more cost effective even if the City needs to find additional bed space over and above the
City’s maximum number of beds allocated at HRRJA (292 beds).
(1) Note the City’s maximum allocated capacity is 292 inmates at HRRJA. To the extent that the City has to house more inmates, additional bed
space may need to be rented at other facilities at prevailing rates.

January 14, 2020

6

  

 

Supporting Information and Analysis

 

DAVENPORT 8: COMPANY

 

January 14, 2020 7

Portsmouth Jail Population Statistics
Based on the most recently available Jail Cost Reports
and City/Jail information, the City has experienced a
downward trend in Average Daily Population (“ADP”) of
inmates housed in the Local Jail and at the HRRJA
over the past 6 years (2013 – 2018). (Figure 1)

Figure 1

FY

– Over the past 6 years, the City’s use of HRRJA was
below the guaranteed 250 beds for which the City
is currently paying.

The City’s 2017 Average Daily Population (“ADP”) was
397 inmates housed as follows:
– Local Jail: 213; and

A

B

C

D

E

Local Jail

LIDS

DOC

Avg Daily

ADP as a %

City

Rated

Population

of Rated

ADP at

Total

Capacity

(ADP)

Capacity

HRRJA

Inmates

(B+D)

2013

(1)

288

479

166%

236

715

2014

(1)

288

412

143%

212

624

2015

(1)

288

379

132%

247

626

2016

(1)

288

230

80%

212

442

2017

(1)

288

213

74%

184

397

(2)

288
288

200
319

69%
111%

180
212

380
531

2018
Average
Source:

(1) Local Inmate Data System (LIDS) ADP as reported in the

– HRRJA: 184.

Compensation Board Jail Cost Reports.
(2) City/HRRJA preliminary figures.

Based on the most recent information from the City
and HRRJA for 2018,
– The City’s Local Jail population is approximately
200; and

Key Observations:
– Over the past 6 years, the City’s ADP has averaged
531 inmates.
– Over the most recent three years, the City’s ADP is
has averaged approximately 400 inmates.

– The City has approximately 180 inmates at HRRJA.

January 14, 2020

8

 Regional and Local Jail/Sheriff Expenditures
FY 2019 Unaudited Actual/Budget
Figure 2

The City’s total FY 2019 Unaudited Actual expenditure
related to the Sheriff’s budget for Local Jail
Operations and Court related functions approximates
$11.9 Million. (Figure 2, Line 5)

FY 2019
1
2
3
4
5

Of this amount approximately $6.3 Million comes
from the Commonwealth Compensation Board and
Jail derived revenues. (Figure 2, Lines 8 & 9)

Expenditures (FY 2019 Unaudited Actual)
Personnel
Jail Expense-Medical
Jail Expense-Food & Other
Other Sheriff Expenses
Total Expenditures

6
7 Revenues (FY 2019 Unaudited Actual)
8 Compensation Board - Salaries
9 Compensation Board - Jail Block Grant
10 Jail Revenues/Recovered Costs

The City’s Local Appropriation (i.e. total cost net of
Compensation Board Revenues) from General Fund
Revenues approximates $5.5 Million. (Figure 2, Line 11)

11 City of Portsmouth Local Appropriation
12 Total Revenues

$5,945,957
348,364
90,468
5,502,119
$11,886,908

13
14
15 City of Portsmouth Local Appropriation
16 Estimated Local Jail Utility Costs

In addition the City’s General Fund appropriates the
following related to its jail needs:

$8,641,405
1,525,396
878,368
841,739
$11,886,908

17 Regional Jail Cost (FY 2019 Budget)
18

Total Local and Regional Jail Costs

$5,502,119
240,000
5,881,063
$11,623,182

– Local Jail Utility Costs estimated at $240,000; and

Key Observation:

– Regional Jail Costs estimated at $5.9 Million.

– The City’s total Local and Regional Jail costs
approximate $11.6 Million based on the FY 2019
Unaudited Actual/Budget data.

(Figure 2, Lines 16 & 17)

Sources: City of Portsmouth/HRRJA.

January 14, 2020

9

 Regional Jail – Key Facts

The HRRJA was originally built to serve its 5 Member Jurisdictions, including the City, in addition to each Member
keeping its own local facility open. As such, it does not operate as a “24 hour/7 days a week” jail facility.
– If the City closes its Local Jail and the HRRJA became a full-time jail for the City, then additional costs for
staffing, transportation and healthcare would be incurred by HRRJA and potentially be allocated directly to the
City.

Based on the most recent Service Agreement adopted by the Member Jurisdictions in 2014, the City pays for an
Initial Guaranteed Capacity of 250 inmates.
– The City pays for 250 inmates regardless of how many inmates less than 250 it sends to HRRJA.

In addition, the City can send an additional 42 inmates at a discounted per diem rate of $40 (per inmate per day).

Based on the above, the City could send a maximum total of 292 inmates to HRRJA. If the City required more beds,
then:
– Additional capacity would have to be reallocated from other Member Jurisdictions; or
– The City would have to contract with other facilities at their prevailing per diem rates.

January 14, 2020

10

 Regional Jail Costs Borne by the City
FY 2020 & FY 2021 Budget

Figure 3

Based on the most recent budget information
provided by HRRJA, approximately $33.7 Million of the
HRRJA FY 2021 Budget is derived from Local
Appropriations from the 5 Member Jurisdictions.

The City’s Estimated Local Appropriation (i.e. cost) for
FY 2021 is approximately $7.2 Million for 250
Guaranteed Beds.
– This translates into an approximate $78.45 per
inmate/per day. (Figure 3, Line 5)

If the City sent an additional 42 inmates to HRRJA,
then it would pay an additional $613,000 or $40 per
inmate/per day. (Figure 3, Line 12)

If the City sent a total of 292 inmates to HRRJA, the
contractual per diem BEFORE other incremental costs
would approximate $72.92. (Figure 3, Line 13)

1
2
3
4
5
6
7
8
9
10
11
12
13

(1)

Chesapeake
Hampton
Newport News
Norfolk
Portsmouth
Total

Initial
Guaranteed
Capacity

FY 2020
Budget
Amount

FY 2021
Estimated
Amount

250
175
200
250
250
1,125

$6,478,750
4,535,125
5,183,000
6,478,750
6,063,563
28,739,188

$7,573,750
5,301,625
6,059,000
7,573,750
7,158,563
33,666,688

FY 2021
Per Diem
Per Inmate/Day

$83.00
83.00
83.00
83.00
78.45
81.99

P o te nti a l P e r D i e m fo r 2 9 2 Inm a te s ( Be fo r e O the r I nc r e m e nta l C o s ts )
FY 2021
FY 2021 Budgeted Cost: 250 Inmates
$7,158,563
$78.45
Additional 42 Inmates
613,200
40.00
Total Potential Per Diem: 292 Inmates
$7,771,763
$72.92

Key Observation:
– It is important to note that if the City closes its Local
Jail and the HRRJA becomes a full-time jail for the
City, then an estimated $1.6 Million of other
incremental operating costs in addition to the
above would have to potentially be paid by the City
to HRRJA(1).
(1) Budget figures and Incremental Cost assumptions provided by HRRJA.

January 14, 2020

11

 Scenario 1

Maintain Local Jail Facility Operations

(Preliminary Results)

Total annual Operational Cost (Local, HRRJA) and
Debt Service approximates $15.5 Million and are
comprised of:

Figure 4

Scenario 1
Scenario
New Local Jail
$5,502,119
Estimated Utility Cost Local Jail
240,000
HRRJA Cost (FY 2021 Budget) - 250 Inmates
7,158,563
HRRJA Cost (FY 2021 Budget) - Next 42 Inmates
0
Estimated Incremental Regional Jail Cost
0
Outsource 100 beds $40 per diem
0
Medical Expense
0
Subtotal Operational Costs before Capital $12,900,682

1 Net Sheriff's Budget (FY 2019 Unaudited Actual)

– Subtotal Operational Costs before Capital are
estimated to be $12.9 Million. (Figure 4, Line 8)
– Debt Service cost for a New Jail Facility is estimated
to be $2.6 Million. (Figure 4, Line 11)
Scenario 1 results in an estimated $3.9 Million Cost
Increase versus the City’s FY 2019 Unaudited
Actual/Budget for Jail Needs.

2
3
4
5
6
7
8

(1)

9
10

Estimated Capital Cost (Debt Service)

– $2.6 Million of this increase is due to the Need for
a New Local Jail Facility.

11

New Jail Capital Replacement Cost

– $1.3 Million of this increase is due to increased
costs at HRRJA as a result of the Federal consent
order.

14

(3)

(2)

Magistrate Facility Cost
13 Subtotal Capital (Debt Service) Costs
12

15

Total Projected Annual Cost

$2,605,133
0
$2,605,133
$15,505,815

(1) FY 2019 Unaudited Actual figure for jail, court and other Sheriff duties net of Compensation Board and other Jail revenue assumptions provided by
the City; (2) Based on local portion of New Jail financing assuming 30 year amortization and 4.75% interest rate (see Exhibit 1); (3) Not applicable.

January 14, 2020

12

 Scenario 1

Maintain Local Jail Facility Operations

(Key Assumptions)

If the City were to maintain Local Jail Facility Operations, the net General Fund support for Operational Costs
before Capital approximates $12.9 Million is based on the following key assumptions:
– Net Sheriff’s Budget for operations is estimated at $5.5 Million based on the FY 2019 Unaudited Actual figures.
Total Expenditures of $11.9 Million offset by Compensation Board and other Jail Revenues of $6.4 Million.
(Figure 4, Line 1)

– Estimated Utility costs for the Local Jail are estimated at $240,000. (Figure 4, Line 2)
– HRRJA Cost for 250 Inmates estimated at $7.2 Million based on the FY 2021 Budget. (Figure 4, Line 3)

Debt Service for a New Local Jail Facility is estimated to be approximately $2.6 Million resulting from a $41.2
Million Local Bond issue based on a $47.0 Million Total Estimated Cost. (see Exhibit 1)
– The Commonwealth has traditionally funded 25% of eligible costs of Local Jails, subject to DOC approval that a
New Local Jail would be the City’s only option for meeting its long-term inmate housing needs.

January 14, 2020

13

 Scenario 1

Maintain Local Jail Facility Operations

(Debt Capacity Impact)
If the City borrowed approximately $41.2 Million of Bonds for a New Local Jail in addition to the already approved
multi-year CIP it would be out of compliance with its adopted financial policy guidelines related to debt.

The addition of approximately $41.2 mm of debt for a new local
jail – along with the existing multimulti-year CIP - pushes the City out
of compliance with its existing debt ratios.

Net Tax Supported Debt vs. Assessed Value(1)

Net Tax Supported Debt Service vs. Budget(1)
16%

6.50%

15%
14%

5.50%

13%
12%

4.50%
11%
10%

3.50%

9%
8%

2.50%

7%
6%
2019

2020

2021

2022

2023

2024

2025

Existing TS Debt (2)

Proposed Debt

Existing POBs (2)

Policy Level (Long Term Capital)

January 14, 2020

1.50%
2019

2020

2021

2022

2023

2024

2025

Existing TS Debt (2)

Proposed Debt

Existing POBs (2)

Policy Level (Long Term Capital)

14

 Scenario 2
(Preliminary Results)

Close Local Jail Facility/Use HRRJA/City Pays 100%
Incremental Costs

Scenario 2
Scenario

Figure 5

City pays 100%
Incremental Cost
Close Local Jail
Use HRRJA

Total annual Operational Cost (Local, HRRJA)
approximates $12.3 Million. (Figure 5, Line 8)
1 Net Sheriff's Budget (FY 2019 Unaudited Actual)

4
5
6

Scenario 2 results in an estimated $3.1 Million Cost
Avoidance versus Maintaining Local Jail Operations in
Scenario 1.

7
8

(2)

0
7,158,563
HRRJA Cost (FY 2021 Budget) - Next 42 Inmates
613,200
Outsource 8 beds $40 per diem
116,800
Estimated Incremental Regional Jail Cost
1,620,000
Medical Expense
1,525,396
Subtotal Operational Costs before Capital $12,307,661

9
10

Estimated Capital Cost (Debt Service)

11

New Jail Capital Replacement Cost
(3)

(2)

Magistrate Facility Cost
13 Subtotal Capital (Debt Service) Costs
12

The City remains in compliance with its Debt Policies.

(1)

Estimated Utility Cost Local Jail
3 HRRJA Cost (FY 2021 Budget) - 250 Inmates
2

Annual cost for Magistrate’s facilities is estimated at
$62,215.

$1,273,702

$0
62,215
$62,215

14
15

Total Projected Annual Cost

$12,369,876

(1) Estimated expenditure for remaining court and other Sheriff duties net of Compensation Board revenue based on FY 2019 Unaudited Actual
figures provided by the City; (2) Not applicable with closing Local Jail; (3) Estimated annual figure represents $360,000 cost ($450,000 less 20%
upfront) amortized over 7 years at 5.0%.

January 14, 2020

15

 Scenario 2
(Key Assumptions)

Close Local Jail Facility/Use HRRJA/City Pays 100%
Incremental Costs

If the City were to close its Local Jail Facility, the net General Fund support for Operational Cost before Capital
approximates $12.3 Million and is based on the following key assumptions:
– Net Sheriff’s Budget for remaining operations is estimated at $1.3 Million based on the FY 2019 Unaudited
Actual figures. Total remaining budget of $2.2 Million offset by Compensation Board revenues of $950,000 for
personnel costs.(1) (Figure 5, Line 1)
– Average of 300 inmates with 250 Inmates housed at HRRJA at an estimated $7.2 Million cost based on their FY
2021 Budget. (Figure 5, Line 3)
– HRRJA Cost for next 42 Inmates estimated at $40 per diem totaling $613,000. (Figure 5, Line 4)
– Another 8 inmates outsourced at other facilities at $40 per diem totaling $116,000. (Figure 5, Line 5)
– City is 100% responsible for Incremental Costs related to medical expense and HRRJA’s additional regional jail
operations totaling $3.1 Million. (Figure 5, Lines 6 & 7)

Annual cost for Magistrate’s facilities is estimated at $62,215.

(1) Based on information provided by the City. Estimated 25 FTEs at average salary/benefit cost of $55,400 assuming Compensation Board
reimbursement of 69%.

January 14, 2020

16

 Scenario 3
(Preliminary Results)

Close Local Jail Facility/Use HRRJA/Incremental
Costs Shared with Other Member Jurisdictions

Scenario
Scenario 33

Figure 6

Total annual Operational Cost (Local, HRRJA)
approximates $9.8 Million. (Figure 6, Line 8)

Incremental Cost
Shared
Close Local Jail
Use HRRJA
1 Net Sheriff's Budget (FY 2019 Unaudited Actual)
(2)

Estimated Utility Cost Local Jail
3 HRRJA Cost (FY 2021 Budget) - 250 Inmates
2

Annual cost for Magistrate’s facilities is estimated at
$62,215.

4 HRRJA Cost (FY 2021 Budget) - Next 42 Inmates

Outsource 8 beds $40 per diem
Estimated Incremental Regional Jail Cost
7 Medical Expense
8 Subtotal Operational Costs before Capital
5
6

Scenario 3 results in an estimated $5.6 Million Cost
Avoidance versus Maintaining Local Jail Operations in
Scenario 1.

(1)

0
7,857,540
613,200
116,800
0
0
$9,861,241

9
10

Estimated Capital Cost (Debt Service)

11

New Jail Capital Replacement Cost
(3)

(2)

Magistrate Facility Cost
13 Subtotal Capital (Debt Service) Costs
12

The City remains in compliance with its Debt Policies.

$1,273,702

$0
62,215
$62,215

14
15

Total Projected Annual Cost

$9,923,456

(1) Estimated expenditure for remaining court and other Sheriff duties net of Compensation Board revenue based on FY 2019 Unaudited Actual
figures provided by the City; (2) Not applicable with closing Local Jail; (3) Estimated annual figure represents $360,000 cost ($450,000 less 20%
upfront) amortized over 7 years at 5.0%.

January 14, 2020

17

 Scenario 3
(Key Assumptions)

Close Local Jail Facility/Use HRRJA/Incremental
Costs are Shared with Other Member Jurisdictions

if the City were to close its Local Jail Facility, the net General Fund support for Operational Cost before Capital
approximates $9.9 Million and is based on the following key assumptions:
– Net Sheriff’s Budget for remaining operations is estimated at $1.3 Million based on the FY 2019 Unaudited
Actual figures. Total remaining budget of $2.2 Million offset by Compensation Board revenues of $950,000 for
personnel costs.(1) (Figure 6, Line 1)
– Average of 300 inmates with 250 Inmates housed at HRRJA at an estimated $7.9 Million cost based on their FY
2021 Budget. Includes sharing of incremental Costs related to medical expense and HRRJA’s costs of additional
regional jail operations totaling $3.1 Million – shared amongst all Member Jurisdictions. (Figure 6, Line 3)
– HRRJA Cost for next 42 Inmates estimated at $40 per diem totaling $613,000. (Figure 6, Line 4)
– Another 8 inmates outsourced at other facilities at $40 per diem totaling $117,000. (Figure 6, Line 5)

Annual cost for Magistrate’s facilities is estimated at $62,215.

(1) Based on information provided by the City. Estimated 25 FTEs at average salary/benefit cost of $55,400 assuming Compensation Board
reimbursement of 69%.

January 14, 2020

18

  

 

Exhibits

 

DAVENPORT 8: COMPANY

 

January 14, 2020 19

Exhibit 1 – Estimated Cost of New Local Jail

Based on information and guidance received from the
City, the Existing Local Jail is obsolete and it is not
cost effective to make capital investments in the
Existing Local Jail.

Figure 7

Estimated Bond Issue and Debt Service

If the City were to keep a Local Jail open and in
operation, the construction of a New Local Jail Facility
would be necessary.

1
2
3
4
5

The City has estimated the cost for a new replacement
facility to be approximately $47.0 Million. (Figure 7, Line

6

2)

8

– The Local Bonded portion approximates $41.2
Million and results in an approximate $2.6 Million
of annual debt service. (Figure 7, Lines 6 & 9)

January 14, 2020

7
9

(1)

Total Estimated Cost
Estimated 25% Eligible Reimbursement
Local Portion Funded from Bonds
Capitalized Interest
Cost of Issuance
Bonds Issued
Interest Rate
Term (Years of Amortization)
Annual Debt Service

$47,000,000
9,870,000
$37,130,000
3,341,700
742,600
$41,214,300
4.75%
30
$2,605,133

(1) Total Estimated Cost provided by the City.

20

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