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Commissioners Fraley, Philbeck and Williams - To Direct the County Manager to Begin the Process for Issuing School Bonds for the Construction of a Replacement Middle School in the Southpoint Township
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STAFF CONTACT
Charles Moore - County Attorney - 704-866-3400
BUDGET IMPACT
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The County’s existing debt service for FY 2016 was approximately $23,000,000. In preparation for FY 2017, it was determined that $55 million in general obligation school bonds would be issued for the design and construction of two new schools which increased the debt service in FY 2017 to approximately $26,500,000. Without consideration for other capital needs, such as emergency communications infrastructure, the additional debt service for the proposed Series 2017 Schools Bonds for a new school ($40,000,000) would increase the County’s debt service in FY 2018 to approximately $30,000,000. The proposed issuance of $40,000,000 in additional debt is the equivalent of 2.57 cents on the tax rate. The County’s debt service, just for the new school bonds, would not return to current levels until FY 2023.
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BUDGET ORDINANCE IMPACT
Increase debt service by approximately $4,000,000.
BACKGROUND
In order to go to the bond market in 2017, a site would have to be acquired, and the project would have to be designed and bid. This will be an aggressive schedule considering that the Schools do not have a site as was the case for the projects which were financed in 2016.
POLICY IMPACT
The County would be closer to the threshold policies which it has adopted regarding debt service ratios and budgets, but would still likely be within the stated policies.
ATTACHMENTS
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