Habersham County approves financing, PNC Bank to fund new animal control facility

The Habersham County Board of Commissioners voted unanimously March 17 to award financing for a new animal control facility and to authorize the chairman to sign closing documents for the installment-sale agreement with PNC Bank.

County bond counsel and financial advisers presented the financing plan during the meeting. Jim Woodward of Gray Pannell Woodward explained the county is using the Association County Commissioners of Georgia (ACCG) ‘‘bricks and mortar’’ installment-sale structure to borrow the funds. Christopher Holt of financial adviser Davenport said seven proposals were received and recommended PNC’s bid at a 3.64 percent interest rate on a 10-year amortization.

The recommended financing covers a par amount not to exceed $6,850,000. Davenport’s repayment schedule showed level annual debt service slightly above $800,000 and estimated interest savings of roughly $600,000 compared with a 5 percent planning rate previously used for budgeting. The proposal allows prepayment if the county has surplus SPLOST (Special Purpose Local Option Sales Tax) receipts.

County Manager Tim Sims told the board the expected repayment source is SPLOST sales-tax collections. He said recent online sales-tax receipts have created an ‘‘excess’’ that the county plans to use for debt service on the facility; he also said $5 million of those collections has been earmarked for hospital debt repayment.

During the required public hearing, residents asked how the facility would be funded and whether fines or other revenues would offset costs. A resident who identified himself as Roger Dale asked who would pay; another resident (recorded in the transcript as Mr. Green) described a recent interaction with animal control and asked about enforcement and county ordinances. Staff and commissioners responded that the county is borrowing to build the county-owned facility and will repay the installment-sale through sales-tax receipts rather than property tax.

Following the presentations and public comment, a motion to accept PNC Bank’s proposal passed unanimously. A separate motion to approve resolution number 2025-532 (authorizing execution of the financing documents) also passed unanimously. Davenport and county counsel said the planned closing date was April 1.

The county’s use of the ACCG installment-sale product means ACCG will own the facility initially and the county will acquire it over the repayment term; PNC will provide the lender funds. County staff said the structure is commonly used in Georgia for public facilities.

The board’s approval completes the procurement and financing selection steps; staff and counsel will return with closing documents for the chairman’s signature and proceed to closing if all conditions are met.