Heavy Financial Losses Forces Maverick County to Cease Operations of Maverick County Detention Center

By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2015

Maverick County Commissioners Court unanimously approved to give 30 days notice to UMB Bank as Trustee of the $43 Million Bondholders and the U.S. Marshal’s Service of its decision to cease operations of the Maverick County Detention Center, owned by a Texas non-profit corporation called Maverick County Public Facility Corporation which is an instrumentality of Maverick County, due to the continuing heavy financial losses being sustained by Maverick County during the past 21 months since taking over the detention center after the withdrawal of The GEO Group, Inc. on October 31, 2013 and the failure to negotiate a working agreement with the Trustee and Bondholders on the continued operation of the detention center at its special meeting held on Friday, July 17, 2015.

Despite Maverick County Commissioners Court and Sheriff Tom Schmerber’s best efforts to operate the controversial detention center in order to save over 120 jobs in the community, the continuing monthly financial losses falling on the shoulders of Maverick County’s General Fund and its taxpayers was too large to turn around the financial viability of the 625 Bed detention center.

Maverick County Commissioners Court approved on July 13,  2015, to issue a $2 Million Anticipation Tax Notes Series 2015 (loan) to cover the financial operating expenses of the Maverick County Detention Center for the months of July, August, and September 2015 to close out the 2014-2015 Fiscal Year ending on September 30, 2015.  In addition, Commissioners Court also approved to transfer the hefty sum of $800,000 from the County’s Road and Bridge Department Budget to the County’s General Fund to pay for any expenses during the remaining three months of the 2014 Fiscal Year Budget, such as payroll or whatever expenses come in during this period.  The total amount of monies lost by Maverick County taxpayers for the unsuccessful operation of the Maverick County Detention Center during the past 21 months is unknown as of press time but is believed to be over $2 Million.

The Maverick County Detention Center currently is housing federal pre-trial inmates under the jurisdiction of the U.S. Marshal’s Service.

The Trustee and Bondholders will more than likely foreclose on their deed of trust lien on the real property together with improvements known as the Maverick County Detention Center against the Maverick County Public Facility Corporation and become the new owners of the detention center.  It is unknown whether the Bondholders will seek to contract another prison management company to attempt to keep the facility open and turn its finances around or take their losses on their investment in the $43 Million bonds issued to finance the over-priced detention center.  Possible litigation may also result between the parties.

Only County Judge David R. Saucedo and Commissioners Roberto Ruiz and Rosy Cantu attended the July 17th special meeting as Commissioners Gerardo “Jerry” Morales and Jose Luis Rosales were absent.

The Maverick County Public Facility Corporation is composed of President-Commissioner Roberto Ruiz, Vice-President-Sheriff Tom Schmerber, Treasurer-County Human Resources Director Jesus Sanchez, Secretary-Commissioner Rosy Cantu,  County Judge David R. Saucedo, and Commissioners Gerard “Jerry” Morales and Jose Luis Rosales.