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Commissioners adopt findings resolution to pursue $12 million school financing; recommend Webster Bank 15-year loan
Summary
The board voted to adopt a findings resolution to submit an application to the North Carolina Local Government Commission to finance roughly $12 million in school improvements, endorsing a recommended 15-year Webster Bank loan at a 4.24% interest rate; final terms will return for approval on March 17.
The Rockingham County Board of Commissioners on March 3 adopted a findings resolution to seek approval from the North Carolina Local Government Commission (LGC) to finance school improvement projects with a planned borrowing of about $12,000,000.
Mitch Bergoglio of Davenport & Company summarized a request-for-proposals process that produced six proposals and identified Webster Bank as the lowest-cost bank bid for a 15-year loan at a 4.24% interest rate (4.45% for a 20-year term). Bergoglio said Websters proposal offered prepayment flexibility and a locked rate that would allow the county to close in early April. He described the alternative public sale approach as slightly lower in total debt service in the model used but noted it would require 60 to 75 additional days to execute.
Bergoglio told the board, “The lowest overall interest rate provided that had prepayment flexibility was from Webster Bank, at a 4.24% interest rate on the 15 year financing. They also provided a 20 year financing rate at a 4.45%.” He said the staff recommendation, made after discussion with bond counsel, was to move forward with the Webster Bank 15-year proposal and to adopt the findings resolution to support the LGC application.
Finance Director Mandy McGee participated in the presentation of financing options alongside Davenport. No members of the public signed up to speak during the public hearing. Commissioner Hall moved to adopt the resolution as presented; Commissioner Barrow seconded, and the motion passed by voice vote. County staff indicated the board will return to the commissioners on March 17 for final approval of financing terms and will seek LGC review on April 1, with a plan to close shortly after LGC approval.
Bergoglio said the analysis used a project budget estimate of approximately $12,000,000; he noted that final construction bids were still pending and that staff would update project budgets and terms as bids are received. Specific prepayment dates and penalty timing in the Webster Bank proposal were described during the presentation but not clearly specified in the hearing transcript; staff and bond counsel will confirm those contract details before final approval.
