By GAYLE WEBER

gweber@dailynews.net

The nation's unstable economy could end up costing Ellis County more than it initially expected if its $5 million bond issue passes in November.

The county voted in June to pursue Public Building Commission revenue bonds to purchase and renovate the north wing of the Hadley Center for county administrative offices.

At the time, the interest rate on the bonds was expected to be 5 percent; however, financial consultant Rick Ensz with Cooper, Malone and McClain said the recent downturn in the country's finances could affect that rate.

"The bond markets, just like all financial markets, are in turbulent times right now," Ensz said. Ensz spoke to the Hays Rotary Club on Monday about the project.

He said in estimating a 5-percent interest rate for the bonds from the outset, he was being conservative.

"Today, there's no longer any conservative flux in that number because the rates have gone up anywhere from a quarter to a half percent," Ensz said.

The county was expected to pay a little more than $3 million in interest on the 20-year bonds, but Ensz said he couldn't guarantee a rate because the economy is too unpredictable at this point.

"Right now, we're really tight on where the rates are," Ensz said. "Down the road, we might have to adjust them up or down."

However, once the bonds are issued, the rates will be fixed.

Also, since Ensz's initial report to the county, the mill levy effect from the bonds has decreased because of increased property valuations.

The effect on the mill levy would be 1.06 mills. The county's yearly payment is projected to be nearly $388,000.

The effect on the owner of a $100,000 house would be $12.19 per year.