Cochise County discusses $100 million public works project funding and bond strategies

On June 20, 2025, Cochise County officials convened a special executive session to discuss the financing of a significant public works project, specifically focusing on the proposed jail tax ballot language and Stifel bond financing. This meeting highlighted the county's strategic approach to managing a projected $100 million construction project, which is anticipated to be one of the largest in the county's history.

A key point of discussion was the procurement of construction materials, particularly steel, which has shown volatility in pricing. Officials noted that purchasing materials upfront could mitigate the risks associated with inflation, ensuring that costs remain stable throughout the project. The decision to hire an owner's representative with construction expertise was also praised, as it is expected to facilitate better decision-making and cost management.

The financial structure of the bond financing was a central theme, with discussions revolving around a 15 to 16-year amortization plan at an interest rate of approximately 4.5%. This structure aims to provide a cushion against potential economic downturns, ensuring that the county can meet its bond obligations even if revenues decrease. The officials expressed confidence in this approach, projecting significant savings in interest payments—potentially reducing costs from $50 million to $36 million over the life of the bonds.

The conversation also touched on the implications of shorter versus longer amortization periods. While some policymakers favor longer terms to distribute costs across future generations, others argued for a more aggressive repayment strategy to minimize interest expenses. The potential for utilizing excess revenue from sales tax to pay down bonds was discussed, with officials considering how to balance immediate financial obligations against long-term fiscal health.

As the meeting concluded, the officials recognized the importance of ongoing discussions regarding the county's unfunded pension liabilities and the need for a comprehensive financial strategy that aligns with the county's growth and infrastructure needs. The outcome of this session will likely shape the county's financial landscape and its ability to fund essential public services in the years to come.