Jail financing agreement

What we get

The County's Oct. 13 framework keeps the cities paying into the new County jail (450 to 460 beds) and a 32-bed behavioral care center for people with both mental health and substance use needs. The jail stays open to every city that signs, and the County commits to plan for expansion or diversion if crowding makes booking limits likely.

What it costs

$205M Jail construction budget (behavioral care center adds $34M)

The money is the 0.2% jail sales tax voters approved in 2023. Through 2028 the County puts in 100% of its share and the cities 75% of theirs, about $55 million, roughly two-thirds County and one-third cities. From 2029 to mid-2034 payments start near $12.9 million a year and rise 2.5% a year (about $75 million), split 2 to 1 County to cities; the cities' part is capped at 75% of their sales tax, and the County covers any gap, after a roughly $2 million reserve built from interest. From July 2034 to 2058 the debt is repaid in level payments; the cities pay any yearly debt service above $10 million, or above the County's sales tax take if that is higher. The bond consultant's late-September scenario uses about 5.1% interest and says yearly debt service after 2035 will be higher than the $9.4 million projected in the spring; the slides do not give the new figure or the total amount to be borrowed.

Timeline

• May 6, 2024Bellingham City Council unanimously approved the original 2024 financing agreement (Cascadia Daily News)
• Oct. 13County Council's committee of the whole discussed the new framework; no action taken
• Oct. 19Interlocal agreement among the County and seven cities introduced (AB2026-783)
• Oct. 27Authorized 5-2 by the County Council Finance and Administrative Services Committee (AB2026-783, County Action Summary)
• By Dec. 31City councils, including Bellingham, approve before the end of 2026

The question: How much will the County borrow, and what will yearly debt service be after 2035 under the new interest-rate scenario?

Oct. 13 framework presentation · County item AB2026-750 · Finance committee agenda, Oct. 27 · Finance committee Action Summary, Oct. 27