Hughes County passes opt-out resolution

The Hughes County Commission passed a property tax opt-out resolution at their meeting on Monday, December 3. The resolution allows the county to opt out of the property tax freeze in the amount of $815,000 per year for 20 years with the proceeds used to build a new county jail. This opt out would replace the current opt out passed in 2003 for $605,000. The difference between the two amounts reflects the growth in Hughes County property assessments during the previous four years.

Our plan has not changed, said Commission Chairman Jim Hardwick. “The Commission’s intent continues to be to move forward with a project that embraces the collection of revenue from sources other than Hughes County taxpayers to fund the project. As fellow taxpayers, we are striving to move forward with a project that minimizes not only our own tax burden, but those of our children", said Hardwick.

The opt-out resolution would provide a guarantee to bond purchasers that the bonds would be paid, resulting in a lower interest rate on the bonds and a savings to the taxpayers of the county.

This decision to pass a property tax opt out resolution may be referred to a vote of the people upon a petition signed by at least five percent of the registered voters in the county. The petitions would need to be filed with the county Auditor within 20 days of the first publication of this decision. A referral petition would require at least 530 signatures of Hughes County voters and would have to be filed no later than December 26, 2007 to be valid.

At the same meeting, the Commission formally agreed to have Northland Securities handle the jail financing. Northland Securities is represented by Toby Morris.

The Commission also voted to solicit proposals from interested architects and construction managers for the design and construction of a new 150 bed jail for the county. The new jail would include a 24 bed work release unit and a 12 bed juvenile detention area. The construction budget for the project is approximately $9 million.

The existing jail is old and the infrastructure is failing. "The taxpayers of Hughes County are faced with an obligation to provide prisoner housing,” said Hardwick. “The two viable options are a smaller jail funded completely by taxes, or a larger facility that would include additional revenue sources and reduce the taxpayer’s burden. The Commission has moved forward with their recommendation of the larger facility in a manner that is referable to leave the ultimate determination of how to proceed in the hands of the taxpayers."