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Council gives first reading to ordinance to streamline issuance of up to $405,000 in general obligation bonds
Summary
Council held the first reading of Ordinance No. 02012026 to amend procedures for issuance and sale of general obligation bonds up to $405,000 for purchase of heavy equipment; proposed changes allow presale notices to speed closing and permit council to amend eligible purchases by resolution.
Newberry County Council gave first reading to Ordinance No. 02012026 on Feb. 4, a proposal to amend and restate prior authorization for issuing general obligation bonds not exceeding $405,000 to fund purchases of a triaxle dump truck, a 20–25-ton trailer and a 6,500-series utility truck.
A county staff member identified as Jack explained that the ordinance would allow the county to use a presale notice (rather than a post-sale notice) to streamline the closing process and avoid timing problems with publication requirements. Staff also said the county intends to use cash on hand within the debt service fund to pay the bond so the financing "didn't involve any form of debt service levy increase or increase to property taxes." Jack said the ordinance would allow council to amend the list of proposed equipment to be purchased by resolution if needed, reducing the need for follow-up ordinances.
The change is intended to speed procurement in the second half of the fiscal year and help the county respond to rising equipment prices. Council moved to approve the first reading (motion by the vice chair; second by Councilman Smith) and the first reading passed unanimously.
Next steps: the ordinance will proceed through the required readings and adoption process; staff said the schedule would allow an ordinance process beginning Feb. 4 to be completed by March 4 if timelines are met.
