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Habersham County approves PNC Bank financing to build new animal control facility
Summary
The Habersham County Board of Commissioners unanimously approved awarding a tax‑exempt installment sale financing to PNC Bank and authorized the chairman to execute closing documents for a new animal control facility, using SPLOST revenues for debt service and targeting a 10‑year repayment term.
The Habersham County Board of Commissioners on March 17 unanimously approved awarding a tax‑exempt installment sale financing to PNC Bank and authorized the chairman to sign all closing documents to fund construction of a new animal control facility.
Davenport, the county’s financial advisor, reported that seven proposals were received in response to the county’s request for financing. Davenport recommended PNC Bank at a 3.64% interest rate and a not‑to‑exceed par amount of $6,850,000. According to Davenport, the bid was well below a previously used 5% planning rate and will reduce interest expense by roughly $600,000 compared with that planning assumption.
“We received seven proposals and PNC’s rate of 3.64% was the lowest and best fit for the county’s requested 10‑year amortization,” Christopher Holt of Davenport said during the presentation.
County manager Tim Sims and county counsel/bond counsel Jim Woodward explained the intended repayment source. Commissioners were told the county plans to use SPLOST (one‑percent sales tax) collections, not the general fund, to make debt service payments so the loan should not increase property taxes. “The goal is not to impact the general fund, which then impacts local property taxes,” a commissioner confirmed; county staff agreed the SPLOST collections are the expected repayment source.
Commissioners asked whether local lenders had an opportunity to bid; Davenport said all county and surrounding banks were solicited and that one local bank returned a proposal but PNC’s bid was materially lower. The board’s vote to accept PNC as the selected lender and a separate vote authorizing execution of closing documents each passed unanimously.
Votes at a glance • Motion to accept PNC Bank for financing the animal control facility (installment sale series 2025): unanimous approval. • Motion to approve resolution authorizing the chairman to execute the financing documents (resolution listed on the agenda as 2025‑3‑2): unanimous approval.
What comes next Davenport and bond counsel will work with PNC Bank on closing documentation and aim to close on or about April 1, 2025. Construction and project timing will follow procurement and construction scheduling once financing is closed.
Funding and context County staff said sales tax receipts include some surplus collections and that voters previously approved using SPLOST dollars for an animal control facility; staff also noted other uses of surplus sales‑tax receipts (for example, county staff referenced $5,000,000 earmarked toward hospital-related obligations). Davenport described the financing structure as a common ACCG (Association County Commissioners of Georgia) bricks & mortar installment sale program used by Georgia local governments. The final project budget, construction timeline and exact repayment schedule will be included in closing documents.
