Littlefield City Council votes to pay off bond for Bill Clayton Detention Center early

Following two special meetings Tuesday, Nov. 24, 2020, Littlefield’s Type “B” Economic Development Corporation board at noon, and the Littlefield City Council that evening, the bond for the Bill Clayton Facility, being utilized as the Texas Civil Commitment Center, will be paid off nine years early.

This week something monumental happened in the City of Littlefield. Tuesday, Nov. 25th, the Littlefield City Council voted to pay off the bond for the Bill Clayton Detention Center early.

The City paid off the bond nine years early, saving the City over $1.5 Million in interest expense. The bond was originally set to be paid off in 2029, and instead, it will be paid off at the end of this month or the first part of December.

“It is a huge deal for the City that happened this week,” Mayor Turpen said. “We are very excited. The City Council and city administration have worked very hard over the last five years to be very fiscally responsible and to set money aside from the rent from the facility to get this debt paid off early.”

He added, “That chapter is behind us. It has been going on in the city since the early 2000’s. We’ve been paying for that debt, and we really struggled in 2009 when the prison went empty; it nearly broke the city. We’ve committed to getting that paid off early and so it is no longer a noose around our neck and we’re very excited that we have that debt taken care of.”

LEDC Financial report

For the LEDC “B” meeting, Board Treasurer, Andrew Eisenwine presented the financial report.

He explained: “The LEDC “B” receives sales tax funds for their projects, and has, in the past, contributed to assist paying bond payments for Texas Civil Commitment Center-Bill Clayton Facility.

“The City of Littlefield has an Interest and Sinking Fund dedicated to pay the bond payments for the TCCC-BCF. The City of Littlefield has planned to pay off the bond early — by the original ending date of 2029. The bond was partially redeemed and the end date was 2024.

“This early December 2020 pay-off will save approximately $1,500,000 in total interest payments,” Eisenwine explained.

The LEDC “B” Board then considered a request from the Cityof Littlefield for $250,000 of LEDC “B” funds to assist in this bond payment as has previously been done.

Eisenwine recommended that amount, as the final contribution, which will assist the City of Littlefield in paying off this bond balance of approximately $2,400,000 of principal and $66,584 in interest.

These LEDC “B” funds, interest and sinking funds saved by the City of Littlefield will pay off this bond authorized by Ordinance 99-1223.

Board Member Retha Williams made the motion and Mayor Turpen seconded the motion, to contribute the $250,000 toward pay-off of the TCCC-Bill Clayton Facility bond. The motion passed unanimously.

Other LEDC meeting info

Present for the meeting were Mayor Eric Turpen, and Board members Lance Parker, Retha Williams, andAndrew Eisenwine, treasurer. Board members not attending were Lottie Spencer, Candy Seth and David Garcia.

First action for the meeting was the motion by Mayor Turpen, which was seconded by Andrew Eienwine, to nominate Lance Parker to serve as the active chairperson, in the absence of Lottie Spencer. The motion passed unanimously.

Acting Chairperson Lance Parker called the meeting to order at 12:06 p.m.

Eric Turpen offered the invocation, then Acting Chairperson Lance Parker led the pledge. No one to comment

No one requested to comment on any of the agenda items. Retha Willliams made the motion, and Andrew Eisenwine seconded the motion to approve the minutes from the Jan. 16, 2020 meeting. The motion passed unanimously.

The rest of the meeting delt with the above mentioned information and action on the Bill Clayton Facility bond,

Acting Chairperson Lance Parker adjourned the meeting at 12:16 p.m.