) STOKES
) JANUARY 3, 2008
The Board of
Commissioners of the
for a recessed meeting (recessed from December 27, 2007) in the
Commissioners’ Chambers of
the
Chairman
J. Leon Inman
Vice-Chairman
Jimmy Walker
Commissioner Ron
Carroll
Commissioner
Commissioner
Stanley Smith
County
Manager K.
Clerk
to the Board Darlene Bullins
Finance
Director
Others
in Attendance:
Mr.
Don Ubell – Bond Attorney
Chairman Leon Inman called the recessed
meeting to order.
Vice Chairman Walker delivered the invocation.
Chairman Inman opened
the meeting by inviting the citizens in attendance to
join the Board with the Pledge of Allegiance.
County
Financial Information
Chairman Inman
expressed his appreciation to the Board for their willingness to meet
to discuss the County’s financial status prior to the joint meeting
with the Board of Education
on January 23rd.
Chairman Inman opened
discussion regarding the County’s current financial status.
Finance Director
|
Payments
by Fiscal Year for Indebtedness |
|
|
F/Y
2007-08 General Fund Payment of Debt |
$ 3,080,792.66 |
|
F/Y
2008-09 General Fund Payment of Debt |
$ 3,024,905.31 |
|
F/Y
2009-10 General Fund Payment of Debt |
$ 1,977,889.00 |
|
F/Y
2010-11 General Fund Payment of Debt |
$ 1,909,417.43 |
|
F/Y
2011-12 General Fund Payment of Debt |
$ 1,638,850.00 |
|
F/Y
2012-13 General Fund Payment of Debt |
$ 1,585,100.00 |
|
F/Y
2013-14 General Fund Payment of Debt |
$ 1,518,700.00 |
|
F/Y
2014-15 General Fund Payment of Debt |
$ 1,460,200.00 |
|
F/Y
2015-16 General Fund Payment of Debt |
$ 1,394,200.00 |
|
F/Y
2016-17 General Fund Payment of Debt |
$ 1,328,800.00 |
|
F/Y
2017-18 General Fund Payment of Debt |
$
884,000.00 |
Hold Harmless
Medicaid Relief
ADM and
Lottery Funding
Tax Value
Funding
Source Scenarios (prepared by
BB&T Capital Markets)
|
|
Principal |
Interest |
Debt
Service |
|
General
Obligation Bond Scenario |
$1,000,000 |
$460,973.00 |
$1,460,973.00 |
|
Certificates
of Participation Scenario |
$1,000,000 |
$471,748.00 |
$1,471,748.00 |
|
Bank
Loan Scenario |
$1,000,000 |
$465,480.00 |
$1,465,480.00 |
Estimated
Debt Service Payment
|
Debt |
Estimated |
Estimate |
|
Amount |
Yearly Payment |
Tax Increase |
|
$15,000,000.00 |
$
1,500,000.00 |
0.05 |
|
$20,000,000.00 |
$
2,000,000.00 |
0.06 |
|
$25,000,000.00 |
$
2,500,000.00 |
0.08 |
|
$30,000,000.00 |
$
3,000,000.00 |
0.10 |
|
$35,000,000.00 |
$
3,500,000.00 |
0.11 |
|
$40,000,000.00 |
$
4,000,000.00 |
0.13 |
|
$45,000,000.00 |
$
4,500,000.00 |
0.14 |
|
$50,000,000.00 |
$
5,000,000.00 |
0.16 |
The Board discussed the information presented
by Finance Director Edwards, Stokes
Commissioner Lankford noted that the Board
must be sure that citizens are well
informed regarding a bond referendum: 1)they must understand the need,
2)what is going to be
built, and 3)how much it will cost.
Board members expressed thoughts concerning
the immediate needs even though the
final decision is made by the Board of Education: (Phase I)
Commissioner Smith
Commissioner
Lankford
Commissioner
Carroll
Vice Chairman
Walker
Chairman Inman
The Board also discussed the following:
·
PODS/modular units versus brick and mortar
(ADM funds cannot
be used for PODS)
·
The State dictates exact square footage per student
·
Other funding sources besides General Fund – ADM,
Lottery, etc.
·
Current bond ratings – Moody Rating – “A1” and
Standard & Poor’s Rating “A”
·
Financial Advisors – RFPs were mailed last week by
Finance Director Edwards
·
Estimated School Construction Cost
Chairman Inman noted that there were several
capital projects that have been put on
hold that will have to eventually be dealt with – courtroom “C”
renovations, roof repairs,
vehicles, paving of parking lots, increased cost of operating expenses,
inflation, etc.
Mr. Don Ubell, Bond
Attorney discussed the following to the Board:
·
General Obligations Bonds – must have public
hearings
·
Certificates of Participation (COPS) –currently
insurance ratings extremely costly due to limited competition in the market –
COPS hard to get LGC approval if a Bond Referendum has failed
·
All financing must be approved by LGC
·
Bank Loan – much faster, at current time very
competitive
·
The County will have to be rated again by Moodys
and Standard/Poor if financing is done by General Obligations Bonds or
Certificates of Participation
·
Lease/purchase option – doesn’t offer a lot of
options
·
Master Financing – allows funding to be borrowed at
one time, but distributed in different phases
·
Energy credits- schools with solar energy –
location difficulties on property
·
Board of Education decides on what it needs and
Board of Commissioners decides on the amount and type of funding available
·
Financing for schools and a community college can
be combined, but financial records for each capital project must be kept
separate
·
Possible tax increase
·
Place Deeds of Trust on as little as possible
·
Need for a financial advisor to offer guidance and
expertise on deciding what is the best financing option and most efficient for
the County
·
Hold off on deciding what the County can afford
until a financial advisor has had time to analyze the County’s financial status
·
Most important - consider all financial options
Chairman Inman expressed the Board’s
appreciation to Mr. Ubell for attending today’s
meeting.
Chairman Inman noted the upcoming meeting with
the Board of Education on
Wednesday, January 23rd at 12 noon at Germanton Elementary
School.
Adjournment
There being no further business to come before
the Board, Chairman Inman
entertained a motion to adjourn the recessed meeting. Vice Chairman Walker moved to
adjourn the recessed meeting.
Commissioner Smith seconded and the motion carried
unanimously.
_________________________
_____________________________
Darlene M.
Bullins J.
Leon Inman
Clerk to the
Board Chairman