County council approves plan to secure $35 million in bonds
The Laurens County Council voted 6-0 at its regular meeting Monday to set up the nonprofit entity that will secure $35 million funding to complete two major capital projects.
By approving third and final reading of an ordinance that will set up a board to pursue installment purchase revenue bonds (IPRB) that will fund the completion of renovations at the nearly 200-year-old Laurens County Courthouse as well as the completion of the newer county building on Bolt Drive, which now houses Veteran’s Affairs and the office of Voter Registration and Elections. Upon completion, the facility will be home to E-911, emergency services and other county offices.
An IPRB has become a way for local governments to fund projects while working around the restrictions of general obligation bonds, which require issuers to stay at or below 8% of its total assessed property values unless passed by referendum.
Council began pursuing the IPRB as a way to fund Phase 3 of the courthouse project and the Bolt Drive project in December. The first two phases of the courthouse project were paid for largely by funds from the 2020 Capital Project Sales Tax (CPST) passed by county voters in a referendum. Phase 3, which includes the renovation of the building’s interior, was not included in the CPST.
Both projects are estimated to cost around $15 million apiece to complete.
Council Chairman Brown Patterson said the acquisition of an IRPB is not expected to raise property taxes in the near future.
“There won’t be a tax increase at the present time,” Patterson said. “Should there be a need for a tax increase in the future, it would be 3 mils.”
Patterson said that would be equal to $4 annually on a $100,000 home.
“I can’t promise there won’t be a tax increase, but it would be no time soon and not under this administration,” he said.
Patterson said the fiscal responsibility of the current administration and staff coupled with an uptick in industrial development across the county has helped offset the expense of the IPRB.
During public comments, resident Dale Stetz, who is running for County Council in District 2, expressed concerns about a tax increase and wanted details about the term of IRPB loans, interest rates and other information.
The interest rate is expected to be at “mid-4%” due to an upgrade in the county’s credit rating from AA-3 to AA-2. The county was at AA-3 in 2020 when the CPST was up for a vote.
Here is how an IRPB is secured:
* A nonprofit entity is formed by the bond issuer and run by a board.
* The nonprofit borrows the funds, which are paid back by the money raised from annual general obligation bonds passed by – in this case – county council.
* Once the debt is retired, the general obligation bonds are no longer needed.
The county has already established a Public Facilities Corporation, which is headed by local entrepreneur Barton Holmes, Clinton YMCA CEO Harold Nichols and Laurens County Public Works Director Billy Wilson, The corporation is tasked securing the IRPB from a lender. The funds will be managed by a board, which will consist of three staff members and two volunteer at-large members, Patterson said.
The Bolt Drive project, which has converted the former Winn-Dixie property in Laurens into county offices, also focuses on the interior and will convert around 43,000 square feet into offices and storage space.
“It doesn’t make sense to do what we did to the outside of these buildings and then leave the inside dysfunctional,” said Councilman David Tribble. “We’re following up on something the people supported by referendum and told us this was important to them.”
In other actions Monday:
* Council approved first reading of three ordinances that will begin the county’s budgeting process for the 2024-25 fiscal year. The budgets for general funding, fire services and the Local Option Sales Tax were approved in title only.
The board scheduled its first budget meeting for 9 a.m. on April 20.
Council agreed to donate $1,500 to fully fund the completion of a mural in downtown Clinton. The mural project is being headed by Presbyterian College junior Barrett Moody. Artist Janette Marvin is to paint the mural.
