The Marshall county Board of Supervisors decided to use a capital loan from a Marshall County bank to pay for the emergency communication system update.

The decision was made during the regular Tuesday meeting, during a discussion supervisors had on how to finance the $2.6 million project.

Auditor Nan Benson said county employees spoke with attorneys from Ahlers & Cooney, a law firm in Des Moines which is representing Marshall County in the project, and learned the project is considered essential purpose. Thus, it would not have to go to a public vote. As a result, the county can get a loan or a bond, which Benson said is all essential purpose funding.

Until a public hearing is held, it is recommended the county does not sign the $2.6 million contract with RACOM to update the emergency communication system.

Supervisor Dave Thompson asked if the county had heard from fire departments about how much money they would need to buy equipment necessary to work with the updated communications system.

“I’ve got about $700,000 in our estimate,” Benson said. “I’ve got three ‘no’s.’ They need nothing. I’ve heard from one who has a $40,000 total that they may need some.”

She said some of the departments might not need full funding, but rather just part.

Jeff Heil, former auditor for the county, said the financing options are a general obligation bond or a capital loan note. A bond is a public option, and he said it is an “all or none” situation.

“When you go to the public sale, it goes to the whole financial market,” Heil said.

He said the further bonds go out, such as eight or 10 years, the less money is wanted. The capital loan has options such as only working with one bank, a negotiated sale with registered security or holding an actual sale — putting out the bid to local banks.

“You don’t have to decide which of those avenues today. Today you need to decide whether you want to take an avenue to let the bank participate or just do a public auction,” Heil said. “Today you just need to get ready to set the hearing.”

Thompson said he would prefer to keep as much of the financing as possible local.

“The job you save may be your own,” he said. “I know there is not a lot of demand at our local banks right now for some of their funds. I think it’s important we shop local and keep it at home, give our local banks the opportunity to do business.”

Supervisor Steve Salasek agreed, and said they might have more flexibility with local banks.

The effort to update the failing emergency communication system has been ongoing in the county government for a year. In December 2019, supervisors heard about the problems – emergency calls being lost, inability to hear speakers. However, the financing was not immediately available. Since then, they have spent numerous meetings discussing the need to update the system and figuring out how to pay for it.

The date for the public hearing will be set at the regular meeting on Jan. 5.

“This is one of the better decisions I’ve had to make,” Salasek said. “I think about this at night and that’s not good. I don’t like be thinking about these kinds of things.”

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Contact Lana Bradstream at

lbradstream@timesrepublican.com.