Council reviews plan to finance $62 million public safety complex; advisers recommend installment-purchase revenue bonds and formation of nonprofit issuer

Town advisers outlined a plan to finance a proposed $62,000,000 public safety complex that would consolidate police headquarters, a municipal court, a fire department headquarters, a fleet/kennel facility and associated parking.

David (financial adviser) and Theo (bond counsel) recommended using an installment-purchase revenue bond structure issued by a single-purpose nonprofit corporation, saying it preserves the town’s 8% general-obligation debt capacity and permits annual payments by appropriation from any legally available funds. The advisers described a proposed funding package that would move roughly $44,500,000 in new bond proceeds toward the project, supplemented by about $2,000,000 of the town’s unassigned general fund balance, $10,000,000 of remaining 2022 limited-obligation bond proceeds from the Midtown TIF, and an estimated $5,500,000 from potential land sales.

"Installment purchase revenue bonds...do not count against the town's 8% debt limit," David, the town's financial adviser, said. "Payments can be made from any legally available source of funds, or a combination of funds, including millage, if you wanted to do that." Theo, the town's bond counsel, explained the conduit approach and said the nonprofit corporation would be formed under the South Carolina Nonprofit Corporation Act and act…