SANDPOINT — Preliminary cost estimates indicate Bonner County can fund a new juvenile detention center without having to raise taxes.

The county obtained cost projections based on 20- and 30-year federal economic recovery bonds and an interest subsidy for a $5 million facility.

Under a 20-year loan, the Build America bond interest rate would start at 3.7 percent and gradually increase to 6.2 percent, with total annual payments ranging from $358,000 to $363,000 over the life of the loan.

A 30-year loan would have an interest rate that would top out at 7.1 percent, with total net payments of $295,000 to $300,000.

Both scenarios factor in a federal interest rate subsidy of 35 percent, which would shave $1.2 million off a 20-year loan or $2.1 million off a 30-year loan, according to cost projections prepared by Municipal Capital Markets Group.

“This payment schedule is real doable,” Bonner County Justice Services Director Debbie Stallcup told county commissioners on Tuesday.

“That to me is very encouraging.”

County commissioners envision more conservative cost estimates by scaling back the scope of the project and factoring in an initial down payment.

The current projections consider a 40-bed facility without a down payment.

“I’m leaning more toward finding out the approximate cost with the bed number we want,” Commissioner Cornel Rasor said.

The county is contemplating a 24- and 32-bed facility layouts.

“We can still come up with efficiencies in construction,” Commissioner Lewis Rich added.

The county is working with the Panhandle Area Council to secure funding to purchase land and pay for construction of a new juvenile lockup. The county would lease the property and building while paying down the loan.