Laurens City Council authorizes hospitality revenue pledge for amphitheater, tables bond series and budget amendment

Laurens City Council on Tuesday approved a master ordinance authorizing the use of hospitality‑revenues to secure debt for a planned amphitheater, but members tabled the specific bond series and delayed a separate budget amendment that would have increased city employee pay.

The master ordinance (11‑25‑01) authorizes limited‑obligation hospitality revenue bonds and a hospitality fee pledge to support tourism‑related amenities, Mayor (unnamed) said during the council meeting. Council then voted to table the series ordinance (11‑25‑02), which would have authorized the specific $4.7–$4.75 million borrowing to finish the amphitheater project.

Why it matters: The move clears the legal pathway to borrow against hospitality receipts — a sales‑tax‑adjacent revenue stream — while preserving council’s ability to negotiate final terms and pick a lender. Councilors said they want clearer line‑item budgeting before approving related payroll increases.

Public comment and oversight concerns

Jake Cooper, a local business owner who addressed the council during the public‑comment period, urged caution. He asked whether the council had done “due diligence” on the loan terms and said the appointed project oversight group had not met since May 28. “When we’re fixing to vote on a $4,700,000 loan … our children are gonna be paying that back,” Cooper said, later quoting Luke 14:28: “For which of you desiring to build a tower does not first sit down and count the cost.”

Legal and financial briefing

Lawrence Flynn, the city’s attorney with Pope & Flynn, told council the proposed structure is expressly authorized under state law (identified in the meeting as section 6‑1‑700 and adjoining sections) and that the ordinance pledges only hospitality revenues — not general‑fund taxes or payroll — as security. “It is only the hospitality revenues,” Flynn said, adding that bond proceeds would go into a restricted escrow account and “it can’t be used for salaries.”

Flynn described bank bids and repayment mechanics: the city sought financing over 20 years, with the recommended bid from United Community Bank priced at 3.86% (tax‑exempt) and subject to a 10‑year reset tied to a short‑term index. Flynn said the structure fixed the rate for the first 10 years and left the city free to refund or refinance later.

Gary Bailey, the city’s independent financial auditor, presented historical hospitality receipts and concluded the revenue stream should cover the roughly $340,000 annual debt service from the proposed borrowing. Bailey said audited hospitality receipts were about $852,000 in the last audited year, unaudited 2025 figures were about $870,000, and year‑to‑date trends suggested the fund could top $900,000 for the current fiscal year.

Council debate and votes

Councilor Sullivan read a prepared statement saying she lacked sufficient line‑item detail about how borrowed funds would be spent and noted other recent fiscal items (including the April 2025 sale of 24 acres at Parcel 9062401006 and an earlier ~$250,000 restaurant investment). She said she could not confidently vote yes on the bond ordinance without more transparency and intended to register a no vote at that time.

After discussion, council approved the master bond ordinance on second reading. The council then tabled the series ordinance (which would have finalized the $4.7M series award) to allow additional negotiation or the possibility of accepting a different bid with a fixed 20‑year rate. The council later debated ordinance 11‑25‑03, a budget amendment that would have allocated hospitality funds and increased payroll by an estimated $300,000 in accordance with a third‑party pay study. That measure was defeated on the initial vote; councilors subsequently voted to reconsider and then tabled the ordinance so staff can provide departmental line‑item detail and schedule further review in the new year.

What officials said next

Flynn said bond counsel had signed an opinion to the lender that the ordinances were legally adopted subject to council action, and that the city could refinance or redeem the debt at any time if market conditions became more favorable. Bailey recommended ongoing monitoring and said the hospitality fund historically has grown; he told council the fund has been rising since 2022 and currently provides a margin above the projected debt service.

Outlook

Councilors repeatedly emphasized support for employee pay increases while insisting on clearer department‑level numbers and legal clarity before approving budget changes. The council left in place the master authorization that permits hospitality‑pledged borrowing and directed staff to return with more detailed budget line items, lender negotiations and a timeline for final votes in the new year.

Votes at a glance

- Ordinance 11‑25‑01 (master bond authorization): approved on second reading (master bond ordinance authorizes hospitality revenue pledge). - Ordinance 11‑25‑02 (series ordinance for $4.7–$4.75M): tabled pending additional negotiation/clarity. - Ordinance 11‑25‑03 (budget amendment to increase payroll by ~ $300,000): defeated on initial vote; motion to reconsider passed and council tabled the ordinance to seek line‑item detail.

Key numbers and authorities

- Proposed series: roughly $4,700,000 to $4,750,000 (series language on file with ordinance 11‑25‑02). - Quoted interest: United Community Bank bid at 3.86% (tax‑exempt; subject to 10‑year reset). - Approximate annual debt service cited by counsel/auditor: $340,000. - Auditor’s hospitality receipts cited: audited ≈ $852,000 (last audited year); unaudited 2025 ≈ $870,000; year‑to‑date trending > $900,000. - Legal citation referenced in discussion: state authorization identified in meeting as 6‑1‑700 (hospitality fee authorization and related code sections).

Sources: meeting proceedings; quotes and figures attributed to Jake Cooper (public commenter), Lawrence Flynn (city attorney/bond counsel), and Gary Bailey (independent financial auditor).