The Daviess-DeKalb Regional Jail has not fared as well financially over the last year as it did the first three years of its operation, according to figures released at a budget meeting on Jan. 15.
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Because things are tight, the board members decided to transfer $125,000 in earned interest from the sales tax fund to the jail’s operating budget. This is noteworthy because of an earlier decision by the board to dedicate all revenues from the sales tax to the retirement of the bond debt.
The interest amount of $125,000 would be used for the jail’s expenses in 2010 only as an emergency fund. The actual sales tax revenue will continue to be dedicated to retiring the bond debt. Board members are confident that there will be new customers for the jail before those funds will need to be used.
"The budget for the sales tax reflects the new policy of making revenue earned from investments available to supplement the operating budget if needed," David Tolen noted in his budget address. "This does not change the desire of the Board of Directors to dedicate sales tax collections to the retirement of the bond debt. The ending balances of cash and certificates of deposits are sufficient to stay on a schedule to retire the bond earlier than its payoff date."
Once flush with prisoners and money, the jail has seen the loss through the years of about 100 inmates from Polk County, Iowa, and about 70 from Wyandotte, Kan.
A change of administrations in Wyandotte County resulted in a change of their policy on holding prisoners outside the state of Kansas, according to Mr. Tolen. Clay County also decided to begin housing municipal prisoners, which in turn took Gladstone and Excelsior Springs prisoners away from the jail.
The loss cut the number of prisoners from full capacity at 250 to around 121 prisoners. The income from housing prisoners has been cut by more than half. The jail lost $966,472.19 from Polk in 2008 and $600,000 from Wyandotte in 2009.
On the positive side, the money in the sales tax checking account and certificates of deposits amounts to over $2 million and is sufficient to cover upcoming payments toward the principal and interest on the jail’s bond debt.
Efforts to generate contracts with other jails to refill the cells at the Pattonsburg jail continue, but have thus far generated few new prisoners.
"The need to replace these revenues will continue to be the highest priority for the coming year," Mr. Tolen stated in his address. "Several good prospects have presented themselves and will be pursued vigorously."
The jail charges only $30 a day to house prisoners and the board agreed at Friday’s meeting not to change that fee. That $30 covers certain trips per prisoner per month — the pickup, two trips to associational law day; and one trip to circuit court. However, the board did agree to charge 50 cents per mile for any trips beyond those in order to defray expenses.
Mr. Tolen summed up his budget address by stating, "Most expenses were maintained near 2009 actual levels with the intent to hold down spending in all departments. An inevitable increase in employee health insurance is factored into the 2010 budget. The inmate medical services still represent a major budget item, but continue to limit liability for Daviess and DeKalb Counties and the Jail District. Staff numbers are down due to attrition and hiring fewer replacements, resulting in a lower payroll for the next year. Budgeted building repairs were maintained higher than actual expenses in 2009 to protect against unforeseen problems. Utilities continue to reflect the savings from switching to natural gas.
"While 2009 was a disappointing year as far as revenue and inmate population numbers were concerned, the jail continued to improve in operations and efficiency. The year 2010 holds out optimism that new contracts will be acquired and revenues will increase, while expenses are held down. The jail district will continue to save Daviess and DeKalb Counties valuable taxpayer dollars while providing housing to other counties and municipalities for their inmates."
@center = 2009 Sales Tax
The sales tax income from revenue of $854,994.60 and interest of $34,186.86 came to a total of $889,181.46. Total expenses came to $510,175.68 paid toward the bond debt, with $145,183.65 for interest and $364,992.03 toward the principal. There were fees of $3,000, a TIF repayment of $2,719.10, for a total expense of $515,894.78. Net income was $373,286.68.
On Jan. 14, $400,000 was taken from the sales tax checking account and added to the CDs, for a total in CDs of $1,675,000. The $5,000 left in the checking account was bolstered by the January revenue to about $71,000.
@center = 2009 Jail Operating Account
Total revenue for the jail was $1,123,771.36. Income for the jail came from Ace Amusement $1,131.11; CD interest $18,583.87; checking interest $443.64; commissary $145,637.71; Evercom $32,711.54; jails 921,994.58; Swanson $1,132.52; other revenue 2,136.39.
Total expenses for the jail was $1,968,221.80: advertising $46; automobile $59,040.75; commissary $83,759.17; fees $868.56; food cost $122,799.68; insurance $229,082.54; Lagers retirement $57,645.54; medical $56,730.59; office $21,110.88; payroll $1,041,709.65; payroll tax expense $103,953.37; postage $1,311.78; professional fees $227.50; rental equipment $8,660.54; repairs $19,194.40; supplies $31,643.74; sales tax $11,052.23; tools and machinery $24,917.39; training expense $9,284.25; utilities $85,183.24. The net loss for 2009 was $844,450.44.