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Rock Hill board authorizes up to $28 million in short-term SCAGO bonds for capital projects
Summary
The Rock Hill School District board approved a resolution permitting the issuance and sale of general obligation bonds under the SCAGO program not to exceed $28 million, with bond counsel explaining proceeds are restricted to capital items and the district—s 8% capacity.
The Rock Hill School District Board of Trustees voted Aug. 12 to authorize the issuance and sale of general obligation bonds under the South Carolina Association of Governmental Organizations (SCAGO) program not to exceed $28,000,000.
Bobby Barnes, who presented the item for the district—usiness services team, said the SCAGO program is a short-term financing tool historically used by the district. Bond counsel Franny Heizer of Burr & Forman described the legal framework and the district—s capacity under state limits. "The document, as I said, authorizes not exceeding $28,000,000," Heizer said, and explained that South Carolina law generally limits a school district—s general obligation bond authority to 8% of assessed taxable property value.
Heizer told trustees the district—s assessed value gives an 8% capacity of about $54,000,000 and said administration expected to issue approximately $27,000,000 in practice, with proceeds available in September. She emphasized that bond proceeds are for capital expenditures only — not for operating costs or salaries — describing capital as items with a useful life of at least one year.
Several trustees asked clarifying questions about the 8% limit, the district—s assessed value and the district—s existing millage approach. A board member noted the board had been briefed in prior committee meetings and signaled support for the measure. The board moved to approve the bond resolution; the motion carried 6-0.
The resolution delegates to the superintendent the authority to determine final issuance details including series designations and possible taxable and tax-exempt series. District officials said the SCAGO approach allows access to pooled sale advantages and typically lower interest rates for short-term capital needs.
What happens next: Administration will finalize the series and sale details in consultation with bond counsel and the superintendent, and the district expects to have capital funds available in September for approved projects.
