Wilson County directs staff to pursue up to $45 million in installment financing, targets Frederick Douglass Elementary

The Wilson County Board of Commissioners on Sept. 8 voted to direct county staff to pursue installment financing for a package of county capital projects and the Frederick Douglass Elementary School project, and to schedule the public hearing required by state law for Nov. 3.

County-contracted financial advisor Ted Cole of Davenport & Associates told commissioners the plan is to seek limited obligation bond financing at a not-to-exceed amount of $45 million and that the preferred lender from an RFP process is Webster Bank with a 20-year fixed rate proposal of about 4.30 percent. Cole said the county’s planning list includes roughly $16.85 million of county non-school projects plus a working estimate of about $32 million for Frederick Douglass Elementary, producing a planning borrowing need in the mid-40 millions; the board did not set final project inclusions Sept. 8.

The financing matters because it would provide near-term funding for multiple county facilities and the school while requiring approval from the North Carolina Local Government Commission (LGC). Cole described a schedule that would require a guaranteed maximum price (GMP) from the school contractor by late October to support an early-November application to the LGC and potential LGC action in early December, with a target closing by Dec. 12. He said Webster Bank would lock the offered rate if the county moved forward promptly, but the lender understands the final borrowing amount might change.

Commissioners asked about the banks’ prepayment language and flexibility. Cole summarized that proposals vary: some lenders include make-whole prepayment provisions while others allow prepayment after a short penalty period. He recommended preserving the ability to prepay without a punitive make-whole calculation if refinancing opportunities arise in the future. The board did not select final projects during the Sept. 8 motion; staff will return with final project selections and the required documents for the public hearing and LGC submission.

The board’s resolution, read into the record, references N.C. Gen. Stat. § 168-20 (requirements for installment financing) and calls for the Nov. 3 public hearing in the commissioners’ meeting room at the Wilson County Government Center. Commissioners completed a motion to fill the lender and term blanks with Webster Bank and 20 years and the motion carried.

The financing direction is procedural: it authorizes staff to pursue the financing process and to bring back the specific financing documents and any subsequent approvals for the board and the LGC. If the LGC does not approve or the GMP for the school arrives at an unsatisfactory level, Cole said the bank would not impose a penalty solely for that change in circumstances.

What happens next: staff will finalize which projects are included in the borrowing, post the required public-hearing notice at least 10 days before Nov. 3, obtain the Frederick Douglass GMP in October, submit the LGC application in early November, and return to the board for the final approving resolution if LGC approval is obtained in December.

The motion to direct staff to proceed with financing, including calling the Nov. 3 public hearing, was approved by the board during the meeting.