Consultant: Person County can finance scheduled school projects but debt capacity will be thin after 2028
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Summary
DEC Consulting told commissioners the county's community investment fund and past transfers create capacity to finance the next two school issuances, with an anticipated limited-obligation bond close in July; the consultant warned the model has limited capacity beyond the planned 2028 issuance.
Andrew Carter of DEC Consulting presented the county's capital financing model and community investment fund (CIF) at the Feb. 17 retreat, outlining how prior transfers and conservative policies built capacity to fund near-term school projects but leaving limited room for additional debt beyond the planned 2028 issuance.
Carter described the CIF as a "budget within a budget," saying it consolidates capital revenues and creates a predictable revenue stream for capital projects. "We've essentially created... a type of enterprise system for your capital," he said, which allows the county to plan multi-year issuances and PAYGO projects. He explained that the county has used CIF transfers and LOBs (limited obligation bonds) to finance school and other projects and that the current model supports the two school issuances already planned.
On timing, Carter laid out a near-term action schedule: staff would bring an initial resolution to the board in May to set a not-to-exceed amount, contracts would follow in June, and pricing and closing were targeted for July so projects could proceed with a fall construction schedule. He noted current county debt stood at about $45.5 million before the planned borrowing and would rise to approximately $65 million after the upcoming issuance.
Carter cautioned that, without added revenues or delaying projects, "bridging" additional projects after the 2028 issuance would be difficult: the model is "thin" on back-end capacity and could afford only modest PAYGO or small additional projects in the early 2030s unless revenues or policy assumptions change. He also discussed general obligation (GO) bonds as an alternative financing tool that requires voter approval and a longer legal lead time but may offer lower interest costs if the board chooses that path.
County staff and commissioners discussed the financing implications; staff noted limited capacity could necessitate a tax increase to support materially more debt service. The consultant offered to run "what-if" scenarios to show timing and tax impacts as the county prioritizes projects in the CIP.