The $52 million Bond issue to construct the F Dewayne Beggs Detention Center has for the fourth straight year had a pre-payment on the principle. These pre-payments have reduced the overall interest expense of the Bonds by $14,500,000.
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The principal amount of bonds outstanding on the Series 2009 A&B bonds has been reduced from $52,000,000 to $29,050,000 in just five years, specifically:
- Series A Serial Bonds – $5,910,000 of the original $20,845,000 amount have matured as scheduled leaving an outstanding balance of $14,935,000.
- Series A Term Bonds – The term Bonds due in 2017 ($1,670,000), 2018 ($4,265,000) and 2020 ($3,630,000) remain outstanding with no change in amortization.
- Series B Term Bonds – As intended, the Series B Term Bonds due in 2029 ($21,590,000) have been reduced by three consecutive special redemptions from excess sales tax collections. These redemptions totaling $17,000,000 leave an outstanding balance of $4,590,000 to be redeemed in ensuing years.
- These special redemptions reduce interest requirements on the Series B from $1,241,000 to $263,625 annually or approximately $14,500,000 over the remaining life of the bonds.
- Subject to continued normal growth of sales tax collections, the entire bond issue should retired by 2019, 10 years ahead of schedule (if not earlier) based on current forecast.
The jail was originally estimated to cost $42,000,00 to construct not including architecture, engineering and consulting fees. The sales tax percentage was calculated to cover around $3,700,00 debt service. At the time of the calculation in 2007-2008 the Oklahoma economy was in a recession and sales tax collection in Norman, Moore, Oklahoma City, Noble and Lexington were in decline. As it as ended up, Cleveland County has experienced year over year increases in sales tax collections.
Sales tax collections:
- 2010 – $6,361,470.78
- 2011 – $6,793,753.67
- 2012 – $7,068,859,.57
- 2013 – $7,331,385.16
There is 1/4 of the monthly collections of sales tax that is designated for the maintenance and operations of the jail, which is fully dedicated to increased personal cost.