Putnam County legislators and county officials discussed on June 23 whether to use assigned fund balance to pay callable bonds tied to the county-owned Lake MacGregor golf course, a move officials said would remove tax-exempt bond restrictions that limit procurement options.

The discussion centered on two scenarios: a partial refund of about $1,734,000 in principal that would save roughly $175,000 in interest, and a full payoff of bonds totaling about $4,750,000 that officials said would save about $477,000 in interest. Commissioner of Finance Mike Lewis told the committee, “So currently, right now, we have $3,000,000 set aside.” He added the county could add up to $2,000,000 more from audit-assigned funds to reach a $5,000,000 callable-bond bucket.

Why it matters: County staff said eliminating the outstanding tax-exempt bonds would lift IRS safe-harbor restrictions now attached to the property and would let Putnam County issue a new request for proposals that shifts more operational responsibility and cash-handling to a private operator. County Commissioner of Buildings and Grounds John Pollock said, “When the tax exempt bonds are paid off, it introduces more opportunities for the county from a procurement perspective and potential benefits.”

Most important facts: Lewis said the bonds date to the county’s purchase of the property and that the county used tax-exempt bonds to acquire the land. He described two payoff scenarios: a partial refund that targets just the golf portion (about $1,734,000 in principal, saving roughly $175,000 in interest) and a full redemption that would remove approximately $4.75 million in related debt and save about $477,000 in interest. Lewis also said the county has been assigning money in audits to a callable-bond account and has already set aside $3 million for that purpose, with audit work expected to add up to $2 million more.

Discussion and staff direction: Committee members and staff discussed timing and next steps rather than taking immediate action. Lewis said the county must notify the depository trust company by mid-November to meet a Jan. 15 redemption date, and he asked the legislature to indicate its appetite for either scenario before the fall so staff could prepare a bond resolution. Pollock described parallel milestones for issuing an RFP and said the existing operator — identified in the meeting as Home Style — would be allowed to bid under any new solicitation. Pollock said a new contract could consolidate three existing contracts at the course (golf operations, food and beverage, and a third-party manager) into a single operator if that served the county’s interests.

Concerns and requests for more information: Multiple legislators asked for more detailed financial history of the course before committing fund balance. One legislator urged a year-by-year outline of operating subsidies, capital improvements and equipment costs, and prior one-time payments — including a previously discussed landscaper wage-theft payout and an ARPA-related $400,000 item — so the legislature and the public can judge whether paying bonds now is the best use of limited resources. Lewis and Pollock said staff would compile historical operating and capital records for interested legislators and prospective bidders.

Formal action: The committee did not vote to pay the bonds on June 23. Members discussed asking the legislature to adopt a bond resolution in coming months to authorize payoff and allow procurement under the new conditions. No resolution was moved or voted on at this meeting.

Next steps: Officials said they would present a draft bond resolution and RFP timeline to the legislature in the coming weeks if the majority indicate support. Lewis set a practical deadline to notify bond trustees by Nov. 15 for a Jan. 15 redemption, and staff said they would coordinate with bond counsel and the county’s audit team to finalize numbers and the assigned funds available.

Background: Committee materials and discussion trace the bonds to the county’s original purchase of Lake MacGregor; county presentations on outstanding debt noted total county debt figures and scheduled principal payments. Lewis stated that eliminating the callable bonds tied to the golf course could reduce outstanding principal beneath what he described as the county’s policy targets and help free capacity for future capital projects.