EDITOR:
With the half cent jail expansion sales tax on the upcoming August ballot, I took a peek into the underlying data and calculations. For those not aware or new to Platte County, I was present at every committee meeting in 2014 when this issue was addressed. I was a member of the 2019 Tax Committee and developed the financial projection used to support the 2020 law enforcement and parks tax ballots, which voters approved.
The purpose of my inquiry into this matter is not to challenge jail population or crime statistics, but solely to understand the financial projection (“the projection”) prepared to support this ballot initiative and the underlying assumptions. My review of the projection raised some questions that voters should consider asking the commission before casting their vote. Also, due to the numerous questions I have, I won’t attempt to address them all in one letter.
The most significant concern pertains to facility staffing costs and what appears to be double taxation.
The 2020 quarter cent law enforcement sales tax revenues appear to have been ignored in the projection. This tax sunsets in 2030. The 2020 commission assumed that taxpayers would not want a perpetual tax, a position I supported. These tax revenues are currently allocated 10% to reserves, 64.8% to the sheriff, and 25.2% to the prosecutor.
The focus of the projection appears to be solely on jail operations, which means that all other aspects of sheriff operations are excluded. The countywide budget for the sheriff includes the existing jail facility and all related costs. Revenues to cover countywide sheriff operations come from the general fund and the law enforcement sales tax noted above. A question for the commission is why were these existing tax revenues not considered in the projection?
New revenues under the proposed half cent sales tax are projected to be $332 million over 20 years. Another $76 million of use tax revenues are projected over the same period, thus bringing total projected revenues to $409 million.
The 20 year projected operating costs for jail operations only (both existing and new) total $237 million. Debt service is estimated to range from $132 million to $162 million, with the variance due to the selected interest rate. Total costs are thus projected to range from $369 million to $399 million.
Currently, annual jail gross staffing costs total $3 million (base pay, FICA, health/life/disability insurance, workers’ compensation costs, and retirement benefits). After applying the 4.2% annual inflation factor used in the projection, the 20 year cost totals $92 million, or 39% of the projected $237 million operating costs.
A question for the commission is does the calculation of required future revenues include current costs that are paid for by current tax revenues? If so, is that in effect double taxation?
The projection assumes 26 new sheriff positions to staff the expanded facility, and that all 26 positions are hired and in place on Jan. 1, 2028. Inmate count increases from 195 in 2027 to 238 in 2028. Thus, 26 new staff positions are added to oversee 43 new inmates.
The inmate count is projected to increase 22% in 2028 as noted above, and 10% annually thereafter until it hits 480 in 2036. It then remains at 480 through 2044. Questions for the commission may include:
•The county’s general population has increased at a rate of 1-2% annually for the past 30+ years. What factors are going to cause this rate of inmate growth?
•Earlier Landmark articles state inmate capacity of 471. If inmate capacity of 102% is achieved in only nine years, what consideration was given to addressing this situation in 2036?
The current inmate to sheriff staff ratio is 5.4 and includes five unfilled sheriff positions. Using the inmate counts in the projection, this ratio becomes 3.8 when the new facility opens in 2028. A question for the commission is what the targeted inmate to staff ratio is and how was that handled in the projection.
Another cost component in the $237 million is overtime pay of $7.2 million, calculated at 5.2% of gross staff costs. While this may seem like a minor item, a question for the commission is the basis for this ratio as well as what rate should be applied if jail staffing assumes all necessary full time positions.
For those who may ask what I believe an appropriate tax rate should be, the simple answer is, I don’t know. However, I am reasonably confident that if the projected expenses include costs covered by current taxes, the proposed half cent rate is not appropriate.
--Gordon Cook
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