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COST CALULATIONS
Brule County South Dakota

CALCULATIONS FOR JAIL

COST CALCULATIONS

Over the past few years when County Departments did not spend all of the money budgeted for them, some of this surplus has been set aside for jail purposes. When other counties pay Brule County for housing prisoners, some of the funds paid have been set aside. At the present time these reserved funds total about $500,000. It is anticipated that this money will be used on any jail repair or renovation.

FIXING

Our architect estimates the cost to fix the present building at $800,000 to $1,000,000. Using the top figure, the County would need to raise an additional $500,000 to complete the project. If the funds are borrowed at 5% interest and are repaid over five years, the annual payment with interest computed semi-annually, would be $115,687. The total cost would be $500,000 plus $78,435 in interest, for a total of $578,435.

Since the County would lose about $100,000 in annual jail revenue from other counties as the fixed jail could not hold as many prisoners, the County over twenty years would lose and need to replace $100,000 annually or $2,000,000. This figure ignores any inflationary factor. The total twenty-year cost to the taxpayers using this option, based upon the above assumptions, would be $2,578,435.

EXPANDING

Our architect estimates the cost to expand and remodel the present building at $2.25 million to $2.5 million. Using the top figure, the County will need to raise $2 million in addition to the amount now on hand. At 5% payable over twenty years, with interest amortized semi-annually, the annual payment would be $161,337 or $2 million plus $1,226,720 in interest, for a total of $3,226,740.

Assuming the County continues to house at least as many prisoners from other counties as it did in 2003, no adjustment needs to be made for lost revenue. The total twenty-year cost of expanding the jail would be $3,226,740.

MILL LEVY REQUIRED

The 2004 taxable value of the County is $313,161,681. To pay the loan to fix the current jail would require a mill levy of .369 mills for five years. The levy to replace the lost revenue from other counties would be .319 mills. The total levy would be .688 mills for five years and, of course, .319 mills for the remaining fifteen.

To pay the loan to expand and remodel the jail would require a levy of .515 mills for each of the next twenty years.

TAXPAYER COST FOR A RESIDENCE

The twenty year tax increase required to fund fixing the jail at a cost of $2,578,435, on a home having a taxable value of $50,000 would be $18.45 in loan payments and $15.95 to replace lost revenues, or a total of $34.40 annually for five years, and then after the construction loan is paid, $15.95 for each of the next fifteen years. The formulas are 50000 X .000369 = 18.45, and 50000 X .000319 = 15.95.

The tax increase required to fund expanding and remodeling the jail, on a home having a taxable value of $50,000 would be $25.70 annually for twenty years. (50000 X .000515 = 25.75)

TAXPAYER COST FOR A QUARTER OF REAL ESTATE

The twenty year tax increase required to fund fixing the jail on a quarter of land having a taxable value of $70,000 would be $25.83 in loan payments plus $22.33 to replace lost revenues or a total of $48.16 for five years and then $22.33 for the next fifteen.

The tax increase required to fund expanding and remodeling the jail on a quarter of land having a taxable value of $70,000 would be $36.05 per year for twenty years.

If you have questions please call the Brule County Auditor 234-4430