ELECT

DENNIS W. REID

  SANILAC COUNTY DISTRICT JUDGE 

42 lexington street
sandusky, MI 48471

ph: 810-648-2311
fax: 810-648-2604

Jail Position:

 

            On August 5th, 2008, the voters of Sanilac County will make history.  Last August and September we collected the necessary number of signatures to force the jail/bond issue onto the ballot, and in their wisdom the Board of Commissioners approved that request.  Now the jail/bond issue is in the voter’s hands to decide.  It is a rare thing indeed in this Country when the government allows the tax- paying voters the right to decide the fate of a public construction project. 

            I’m certain others will disagree with me, but I personally view the August 5th vote as a referendum on the entire idea of constructing any new jail in Sanilac County.

            The Board of Commissioners is requesting the authority to issue and sell $16.6 million in bonds under the belief this sum will construct, outfit and furnish an expanded new jail and renovate and refurbish the existing jail.  The ballot language approved by the Board clearly states the $16.6 million figure will “defray all or part of the cost”. 

            Based on that language if the $16.6 million bond request is approved by the voters even the Board of Commissioners is uncertain if the sum will be enough to completely construct whatever size jail they might decide to hang us with.  The Board hasn’t bothered to tell us what happens if 2/3rds of the way through the construction project the $16.6 million turns out to be insufficient. 

            The Board also makes it very clear in their ballot language that the principal and interest for these bonds is a “first budget obligation”, and that means exactly what it sounds like.  The repayment of all principal and interest for these bonds comes first over other County services, and the Board may levy “ad valorem taxes on all taxable property within its corporate boundaries to pay the principal and interest”. 

            Considering after 4 years of research and public debate the Board still cannot come to an agreement on whether to renovate the old jail, or, on what size new jail to build if any, the thought that they are requesting the power to levy taxes on all of us to cover the expenses incurred from the jail project that remain unpaid from Federal bed rentals should be alarming to all property owning tax payers in Sanilac County.

            I understand if the bond request is approved by the voters on August 5th, the $16.6 million the Board is proposing would guarantee 7% interest per annum for a minimum of 10 years to the investor as an investment incentive, and, repayment would be insured by the full faith and credit of Sanilac County, that’s you and me.  With that guaranteed rate of interest and minimum 10 year payoff period, the $16.6 million figure being requested automatically jumps to over $28.2 million the Board is really requesting from us.  So during the first 10 years even if we found the money to pay off the bonds early, we could not.  I further understand from the proposed ballot language that the proposed bonds could be outstanding for 30 years.  At the 7% per annum rate of interest guaranteed to the investor the interest cost alone to Sanilac County tax payers over a 20 or 30 year period would be astronomical.  These numbers represent the real financing package the Board of Commissioners will be requesting from the voters of Sanilac County on August 5th

            The only repayment plan for the new bonds being proposed by the Board of Commissioners and Sheriff is based exclusively upon income generated from bed rentals to the US Marshall Service or higher property taxes for county residents.  The Marshall Service will not guarantee one cent in income to Sanilac County beyond tomorrow, will not sign a long term lease for the use of our beds, will apparently contribute no money to help the county with the construction costs and simply desires to rent our beds as their need arises.  As is usually the case with the Federal government, they like to dictate the terms of their involvement, be in charge of the entire project from a distance but more importantly keep their options open for a better deal.

            The tax payers of Sanilac County are being asked by the Board of Commissioners and Sheriff to spend millions of dollars we do not have and could never otherwise repay on our own, all to help this agency with their overcrowding problems, and yet receive nothing in return but the bill.

            Sanilac County has no present or future need for an expanded jail of any kind.  Our current in-county needs amount to approximately 70 beds per day.  With repairs on the current jail our in-county bed needs could be easily met with plenty of current beds to spare and rent with no additional cost to taxpayers.  Formulating a reasonable plan to repair the current jail and paying off the 1995 jail expansion debt are the issues we should be concentrating our efforts on. 

            The 1995 addition to the County jail was funded by the same bond/bed rental plan now being proposed to construct the new jail and renovate the old jail only on a much grander scale.  In 1996 the County sold $1.35 million in bonds to finance that expansion.  As of April 16th, 2008 Sanilac County still owes $820,000.00 in principal, and over $1.078 million in principal and interest as of that same date.  At present the County has absolutely no solid plan in place to retire this older bond debt which comes due in 2013.

            The Sheriff and the County Commissioners need to face the fact that Sanilac County cannot afford this type of jail project.  Sanilac County unemployment is around 7.5% compared to the national average of 5.0% and a state average of 6.6%.  We live in a county with one of the highest unemployment rates in a State with the highest unemployment rate in the nation.  The residents of Sanilac County cannot find any jobs let alone permanent jobs good enough to raise a family and at the same time build, maintain and pay for a multimillion dollar construction project.

            Sanilac County already has sufficient beds to met our needs, we just need to find ways to use them better to increase county revenue without increasing costs to the tax payers.  Increased revenue without increased operating costs is the kind of money we need and could use towards renovating the current jail.  One additional free bed per day rented at $79.00 per day to the US Marshall Service generates $28,835.00 per year for the County and all without additional costs to the tax payers.  If the Courts and Sheriff could find ways to ensure public safety and yet reduce our in-county daily bed usage by even 10 beds per day the profit potential for the Sanilac County is obvious. 

            With some creative ingenuity from the Sheriff, Judges and Probation departments in Sanilac County I fully believe we can find workable alternatives to spending millions of dollars in interest and principle on a project we cannot afford.  With new and expanded use of alternative sentencing options by the local courts we could reduce our in-county needs even more thereby opening additional beds for Federal rental without additional costs or risks to the tax payers.  That is the significance to Sanilac County in adopting and implementing alternative sentencing programs.

            Repairs at the current jail are needed, I doubt too many people would argue this point, but there are other options available to us beyond indebting the next generation of county tax payers to solve the problems.  It’s time the powers-that-be seriously examine these alternatives for the solution.           

                                                                                   

                                                          

 

 

                                                         

 

 

Paid for by the Committee to Elect Dennis W. Reid

P.O. Box 127

Sandusky, Michigan 48471

42 lexington street
sandusky, MI 48471

ph: 810-648-2311
fax: 810-648-2604