Habersham County approves financing and authorizes contracts for new animal control facility

The Habersham County Board of Commissioners on March 17 approved awarding financing for a new county animal control facility and authorized the chairman to sign closing documents, accepting a PNC Bank proposal the county’s advisers said carried a 3.64% interest rate and a 10‑year repayment term.

The action followed a public hearing required by the Association County Commissioners of Georgia (ACCG) financing program the county selected. Jim Woodward, bond counsel, told the commission the financing will be structured as an ACCG installment sale agreement and that PNC’s proposal best met the county’s terms. Christopher Holt of Davenport, the county’s financial advisor, summarized the responses to the request for proposals and said the PNC pricing produced interest savings compared with the county’s earlier 5% planning assumption.

Why it matters: County officials told the commission the installment sale allows construction to begin now and that planned repayments will come from SPLOST (special purpose local option sales tax) proceeds rather than property taxes. County managers and advisers said the lower-than-planned interest rate reduces the cost of borrowing and preserves flexibility to prepay the debt if additional SPLOST revenue becomes available.

Davenport’s Christopher Holt said the county received seven proposals and that PNC offered the lowest rate. “PNC’s rate of 3.64% and the ten‑year amortization gave the county better pricing and the ability to prepay,” Holt said. The county’s presentation showed an annual debt service just over $800,000 on a level schedule and estimated roughly $600,000 in interest savings versus the planning rate.

Interim County Manager Tim Sims said the county intends to repay the installment sale from SPLOST receipts. “We are having an excess of SPLOST funds right now with the way the sales tax receipts are coming in,” Sims said, and added that the county had already earmarked some SPLOST dollars for other projects. He told the commission the financing structure used by ACCG is commonly used across Georgia for public facilities and results, ultimately, in the county repaying the loan over time.

At the public hearing, resident Roger Dale (address given on the record) asked who would fund the facility. He was told the county is borrowing to build the facility and will purchase the project over time under the ACCG structure. Dale said some residents opposed other proposed projects in prior years and asked why the county was moving ahead now; commissioners and staff replied that voters previously authorized SPLOST funds for an animal control facility and that public interest for the project has been strong.

Votes and formal actions: The commission approved two linked items under new business. First, by motion and second, the board accepted PNC Bank’s proposal for the tax‑exempt installment sale (series 2025). Second, the board approved a resolution authorizing the chairman to execute all necessary documents to effect the financing. Both motions passed unanimously.

Key details from the financing presented to the board: - Structure: Tax‑exempt installment sale agreement through ACCG (ACCG bricks and mortar program). - Maximum par amount authorized in the earlier intent resolution: $6,850,000. - Selected bid: PNC Bank at 3.64% interest, 10‑year amortization; ability to prepay. - Estimated annual debt service: just over $800,000 (level schedule). - Expected repayment source: SPLOST (sales tax) collections, not the general fund/property tax. - Expected closing date: April 1, 2025 (county and advisers identified that date in the presentation).

Votes at a glance (other formal items during the meeting): - Consent agenda: approved unanimously. - Derelict vehicle ordinance: accepted for first reading (board carried the first‑reading motion unanimously; final vote scheduled for next meeting). - Appointments: Development Authority appointment of David LaVorn approved; Airport Commission appointment of Spencer Carr approved; Avita Board appointment tabled to next month. - Other routine items (employee recognitions, proclamations): presented; no formal votes required beyond consent.

What the board directed next: Staff and advisers will finalize closing documents with PNC and ACCG and proceed to close the financing. County staff said they will continue to use SPLOST collections to make scheduled payments and will consider early payoff if additional SPLOST receipts allow.

Ending note: County officials framed the move as using voter‑approved SPLOST funds to finance a project voters previously supported, and said the county’s competitive pricing reduced the long‑term cost of borrowing.