Carter County approves up to $40 million in capital notes, signs off on disaster-recovery contracts and budget amendments

Vice Chair Kelly Collins and the Carter County Board of Commissioners voted unanimously April 21 to authorize the issuance of general obligation capital outlay notes not to exceed $40 million, and to approve a bundle of disaster-recovery contracts and budget amendments intended to accelerate post-storm repairs.

The vote came after Finance Director Carolyn Watson reviewed the county packet and introduced financial adviser Elizabeth Zuelke of Raymond James & Associates, who described a 10-year capital outlay note structure. Zuelke said the state would fund the first three years of interest and administrative costs and reimburse interest up to 5%, enabling the county to begin road and bridge projects while recovery payments are expected to arrive.

The measure authorizes the county to issue notes, establish terms and disposition of proceeds and provides for a tax levy to pay principal and interest. The commission approved the resolution on an electronic roll call with 20 yes votes.

Commissioners also approved several large POs tied to disaster repairs. The commission unanimously approved two POs to Summers-Taylor, Inc. from the 910-disaster account: $306,696.55 for resurfacing Hampton Streets and $419,750.00 for scour protection and repairs at Heaton Creek Bridge. The board approved a purchase order for Hinkle Environmental Services for $299,737.75 related to recovery operations.

Smaller procurement actions intended to keep emergency repairs moving included two Landworx POs for remaining balances on temporary Poga Bridge #1 and #2 ($123,000 each) and short-term contracting with Sidekick Excavation ($3,600 and a one-month PO of $1,800).

The board also approved County Fund Budget Amendment 101-9 totaling $199,831.57 (partially funded from reserves and a $6,472.87 draw from the unassigned fund balance), Solid Waste Fund Amendment 116-6 ($25,982.52), Drug Fund Amendment 122-4 ($6,950.00), and a Highway Fund Amendment 131-6 ($4,862.86). Several school and federal fund amendments (including General Purpose School Fund and Federal Projects Fund items) were also adopted.

Finance Management Chair Brad Johnson and Watson presented the county’s latest audit findings during the meeting. They said auditors identified shortcomings in accounting records maintenance, timing-related budget-operation issues linked to ESSER and grant flows, and purchasing deficiencies in a few instances. Johnson described the findings to the commission and framed several of them as timing and documentation issues that staff will address.

The meeting closed after the board approved revised County Commission Rules of Procedure (v8) and heard an attorney report from County Attorney Josh Hardin. The board adjourned at 8:10 p.m.

What’s next: authorization to issue notes gives the county a financing vehicle; specific note sale dates, interest rates and final legal terms were not set at the meeting and will require follow-up actions by staff and legal counsel.