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Habersham County approves financing plan to build new animal control facility, accepts PNC bid at 3.64%
Summary
The Habersham County Commission approved awarding financing and authorized closing documents for a new animal control facility to be funded through an ACCG installment sale; PNC Bank offered the winning 10-year bid at 3.64 percent. Commissioners said repayment is expected to come from SPLOST sales-tax collections.
Habersham County commissioners on March 17 approved financing and authorized closing documents to build a new county animal control facility, awarding the installment-sale loan to PNC Bank at a 3.64 percent interest rate.
The move follows a public hearing and a presentation from Davenport, the county’s financial adviser, and bond counsel Gray Pannell Woodward. Christopher Holt of Davenport told commissioners the county received seven proposals and that PNC’s bid was the lowest; the recommended structure is a tax-exempt installment sale through the Association County Commissioners of Georgia (ACCG) with a 10-year amortization not to exceed $6,850,000.
County manager Tim Sims and bond counsel Jim Woodward explained the procurement and financing structure at the meeting. Sims said county officials expect sales-tax collections from the existing special-purpose local-option sales tax (SPLOST) to repay the installment sale; Davenport’s analysis showed the lower interest rate would save roughly $600,000 in interest compared with a 5 percent planning rate used earlier in the process.
Davenport presented an amortization schedule with level annual debt-service payments of just over $800,000 beginning in the next fiscal cycle. Holt said PNC agreed to a prepayment option so the county could retire the obligation early should surplus SPLOST receipts become available.
During the public hearing phase before the presentation, residents asked how the facility will be funded and whether fines or other revenues would cover repayments. County staff told residents the project is a county borrowing using ACCG’s bricks-and-mortar program; PNC will lend to ACCG’s program and the county will acquire the facility under the installment agreement and repay over time. Sims reiterated that the plan is to use SPLOST (sales-tax) receipts for repayment and not general-fund/property-tax revenue.
Votes at a glance - Award financing to PNC Bank (installment sale, Series 2025) — motion passed unanimously. Terms presented: 3.64% interest, 10-year amortization, not to exceed $6,850,000; prepayment allowed; closing targeted April 1, 2025. (Mover/second: not specified in transcript; outcome: approved.) - Authorize chairman to execute financing documents (Resolution No. 2025-532) — motion passed unanimously. (Mover/second: not specified; outcome: approved.) - Additional related votes during the meeting (appointments and consent items) are recorded separately in the minutes and summarized in the commission packet.
Commissioners framed the action as using a voter-approved funding source and as avoiding an impact on the general fund. Holt noted that local banks were solicited; a local bank (South State) submitted a proposal but PNC’s bid produced materially lower interest costs.
The commission took the two financing votes during its new-business agenda and closed the meeting after routine items. Next steps listed by staff include completing loan-closing documents and a target closing date of April 1, 2025.
