Wayne County adopts $9 million reimbursement resolution for Rosewood school improvements; borrowing not immediate

The Wayne County Board of Commissioners on Sept. 16 adopted a resolution declaring the county's official intent to reimburse expenditures for improvements to Rosewood Elementary and Rosewood Middle School under U.S. Treasury rules.

County finance staff said the action does not obligate the county to borrow immediately, but it allows the county to pay architect and construction-related costs now and later reimburse itself if it decides to issue debt. The county's financial advisers and bond counsel recommended the step because the school board recently selected an architect for an elementary-school addition and the county expects about $3 million in additional costs for that addition beyond existing grants. County staff said the total anticipated borrowings could be up to $9 million to cover work not paid for by grants or previous financing.

"This does not bind you to borrow later on for the project. What this allows us to do is start paying these bills," a county official explained during the meeting. Staff said borrowing would likely not occur for several months because bids must be in hand; the county can cash-flow current work using existing grant and financing proceeds and then reimburse itself later if financing is pursued.

Commissioner Daughtry moved adoption of the resolution; the board approved the motion unanimously. Staff noted the county typically waits to issue bonds until project bids are complete and interest-rate conditions are favorable.

The resolution permits reimbursement under applicable U.S. Department of the Treasury regulations and was presented to allow the county to continue paying soft costs, such as architectural fees, without risking the ability to treat them as reimbursable if debt is issued later.