COLDWATER, MI (WTVB) – Branch County taxpayers maybe getting a financial break in the financing of the Branch County Jail.
Branch County approved a millage for the new jail in 2018. The total bond was slightly over $24-point-2 million. The original plan was to pay off the bond in 2037-2038.
County Administrator Frank Walsh told County Commissioners during their work session on Tuesday that since the bonds were sold, the county’s annual taxable value growth has been in the range of four to five percent which creates a revenue stream that exceeds the annual bond payment.
One option before the Commissioners is to immediately reduce the millage rate from 1.2310 to .78 mills. The bond would still be paid off in 2037-2028.
Over time, the millage rate would continue to be reduced from .78 to .4251. Walsh says the amount of the reduction is tied exclusively to the growth or decline in the county’s taxable value.
The other option is to maintain the current millage rate. With this scenario, the county would commit the surplus funds to an early pay off. Walsh points out one of the challenges is that the county cannot legally begin to pay early until May of 2030 and it is highly probable that the jail bond would be paid off in the 2031-2032 tax year.
Walsh’s report was presented to the Commissioners for information purposes only and no formal action was scheduled. It’s expected to be discussed again within the next month. If the millage is reduced, taxpayers won’t see it on their bills until next January.
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