This week, the county accepted UBS/Paine Webber's bid to finance a $24.8 million bond deal to pay for a 400-bed jail expansion. The county, in turn, will pay an interest rate of nearly 4.2 percent - a bargain, according to Zions Bank executive Jon Bronson, who helped broker the agreement.

"You will easily stay within the boundaries you put before the public in the election materials," Bronson told commissioners.

"That's important," said Commissioner Dannie McConkie, wary of the fuss taxpayers made when officials offered a short-lived 138 percent tax hike proposal in the 2003 budget to build the jail and cover other increased county costs.

Before November's bond election, officials promised voters they would build the jail expansion at the same tax rate as the current jail bond - 5 annually on 67,000 home. Once the new jail wing is open, the county will impose a tax increase of about $35 annually to operate and staff it.

Bronson said the county - depending on construction costs - may be able to put off imposing the second part of the tax. He attributed the low rate to a highly competitive bidding process. UBS/Paine Webber was one of 10 bidders interested in the bond sale.

"Waiting until January, when sales volumes are down and everyone is focused on what is available, helped us tremendously," he said.

Officials are already weighing the option of using prefabricated steel cells instead of concrete, which may reduce the cost.

"We are still in the process of coming up with our bidding process to build the jail, so we can't say what the construction costs are going to be," Commissioner Alan Hansen said. "But to see that much interest in our project, lets us know we could be looking at saving more money."

lorib@sltrib.com