Callaway County jail committee considers taxes

Courtney Wegman, right, vice president of LJ Hart & Company, and President and CEO Larry Hart talk to members of the jail community advisory committee. Their research suggests two half-cent sales taxes will fund a new justice center and its upkeep.
Courtney Wegman, right, vice president of LJ Hart & Company, and President and CEO Larry Hart talk to members of the jail community advisory committee. Their research suggests two half-cent sales taxes will fund a new justice center and its upkeep.

With the numbers crunched and a potential building site in mind, Callaway County's plans to build a new justice center are taking shape.

"We're not dead-set on spending $30 million," Presiding County Commissioner Gary Jungermann said.

Members of a citizen committee formed to give feedback on issues pertaining to county facilities met with county officials and representatives from LJ Hart & Company on Tuesday evening. First convened in January, the committee is tasked with giving feedback as county officials plan how to address a crumbling jail, too-small office facilities and other problems. (Read more about those issues at: Jail committee faces the figures.)

During a previous meeting, N-Form architect Jennifer Wilson explained building a "justice center" that combines a jail, sheriff's office, courthouse and the various courthouse offices might be the most cost-effective solution.

"The trend among counties is separating judicial and administrative functions," Wilson said. "That's what they're working toward."

Based on square footage needs and current per-square-foot construction costs, Wilson calculated a $29,618,200 construction cost for a new justice center. That doesn't include costs for renovations or acquiring additional land. New developments might drive that cost down, or make it more attainable.

County officials have approached the state about acquiring Rice Hall, an unused part of the Missouri School for the Deaf and former home to Kingdom Christian Academy. The property is at the corner of State and East Eighth streets.

"This is an attempt to find a way to reduce that cost," Wilson said.

She diagrammed how offices could fit into the building with room to grow. Two parking lots, four courtrooms and a jail could be added.

County officials have toured the building and said it's in excellent shape.

"I think everyone agrees we could use this facility, do a remodel on it and make it work," Jungermann said.

He said state Sen. Jeanie Riddle, R-Mokane, supports the idea and has filed a bill with the state Legislature to convey the property to the county. The hope is lawmakers will agree to turn it over for free or at a low cost.

"We got the land for the (current) jail before we passed the sales tax, and that helped," committee member Gracia Backer said.

LJ Hart is a Missouri-based investment banking company known for its work in helping school districts pass financings. The county hired the company to review the county's cash flow and figure out what kind of tax might be necessary to pay for the project.

Vice President Courtney Wegman said she and the county agree a sales tax makes more sense than a property tax.

The sales tax will be more equitable (because it reaches) people who come through the county," she said.

According to the firm's numbers, visitors to Callaway County account for about 60 percent of the sales tax collected.

"If you talk to the law enforcement, visitors are where most of the trouble comes from," President/CEO Larry Hart said.

From there, Wegman worked with "worst-case scenario" numbers. She assumed no growth in sales tax collected and a higher interest rate on bonds issued than is currently the case.

"We don't want to be overly optimistic," Hart said. "That's how governments get into trouble."

Based on data from the last five years, Wegman suggested the county put a 2.5-cent sales taxes on an upcoming ballot. Missouri statute prohibits any individual sales tax from exceeding a half-cent.

The first tax would go toward the justice center's construction, other improvements to county facilities, operations of new facilities and "other law enforcement activities" - for example, to help the county afford higher salaries for deputies. That tax would have no expiration date.

The second tax would be solely targeted at paying for the facility construction and improvements and would come with a built-in expiration date 21 years after its passage. The county would have the option of ending it early if the construction expenses were paid off more quickly than anticipated.

The propositions' wording isn't final and commissioners have not yet voted on whether to include them on a ballot.

Callaway County currently imposes a 1 percent sales tax. Including Missouri's sales tax, the in-county sales tax totals 5.225 percent.

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