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Habersham County approves financing, awards PNC bid for new animal control facility
Summary
The Habersham County Commission accepted PNC Banks winning proposal and authorized county leaders to execute closing documents for a tax-exempt installment sale to finance a new animal control facility; commissioners said repayment is expected from SPLOST (sales tax) receipts.
The Habersham County Board of Commissioners voted March 17 to accept a financing proposal from PNC Bank and to authorize county leaders to complete closing documents for a tax-exempt installment sale to build a new animal control facility.
County bond counsel Jim Woodward said the county used the Association County Commissioners of Georgia (ACCG) installment-sale structure for the project and held a public hearing before the vote. "It's a product they call their bricks and mortar program," Woodward said, describing the ACCG process and why a public hearing was required.
Tim Sims, interim county manager, told the board that the county expects repayment to come from sales-tax collections (SPLOST) rather than property taxes. "We are anticipating that this excess... most of that repayment will be from the sales tax collections," Sims said when asked how the debt would be serviced.
Davenport, the county's financial adviser, reported seven competing proposals and recommended PNC. Christopher Holt of Davenport told commissioners PNC offered a 3.64% rate with a 10-year amortization and agreed to prepayment options. "Of the 7 proposals received, all 7 of them were under the planning rate of 5%... PNC. They offered a rate of 3.64%," Holt said.
The board first voted to award the financing to PNC Bank; the motion passed unanimously. The commission then approved a resolution authorizing the chairman to execute all documents related to the installment sale agreement; that vote also passed unanimously.
During the public hearing, resident Roger Dale asked who would fund the facility. Woodward and county staff explained the structure: ACCG would arrange the financing and PNC would lend the funds; the county would then purchase the project over time. Sims added that SPLOST receipts and other surplus sales-tax collections are expected to cover the payments and that the county had already earmarked portions of such receipts for other obligations.
Commissioners and staff emphasized local outreach during the RFP process. Holt said the county and its advisors contacted area and regional banks; Sims confirmed local banks were invited to bid but only seven proposals were received and PNC's rate produced the lowest net cost to the county.
Ending note: County staff and legal counsel will complete closing steps with PNC and ACCG toward an anticipated closing date in early April, and the county said it will use SPLOST revenue streams projected in the budget to repay the installment sale.
