Giles County approves motor-vehicle privilege tax and $8.5M bond issue after county executive warns of structural deficit

Giles County commissioners voted Feb. 17 to adopt a county-wide motor-vehicle privilege tax and to authorize up to $8.5 million in general-obligation bonds to fund a previously approved courthouse renovation, after County Executive Graham Stowe told the body the county faces a structural budget deficit.

Stowe told commissioners the county has repeatedly used reserve funds to balance past budgets and that those actions now leave the county about $1.8 million short for the 2025–26 fiscal year. “The root of the problem is a structural deficit,” Stowe said, adding that past transfers from reserve Fund 189 removed capital cushions that would otherwise pay for projects such as the courthouse and EMS stations.

The commission approved Resolution 2026-18, the motor-vehicle privilege tax measure, after debate over exemptions and ballot timing. Commissioner Evan Baddour moved the resolution; County Clerk Carol H. Wade explained the county’s definition of antique license plates and a subsequent amendment added current antique plates and one-time plate issuances to the exemption language. The amended resolution passed by roll call vote; a motion to enact the tax immediately was withdrawn while commissioners clarified election-timing requirements.

Commissioners also adopted Initial Resolution 2026-19 and then Resolution 2026-20, authorizing the issuance of general-obligation public-improvement bonds not to exceed $8.5 million to fund the courthouse renovation. The body agreed to amend the repayment schedule from a 15-year term to 20 years. Stevens, Inc., bond counsel (Mr. McAnulty) told the commission that, under current market conditions, 20-year fixed rates were roughly 3.58 percent and would yield an estimated annual repayment of about $615,000; a 15-year structure would have been about $730,000 per year at roughly 3.3 percent, he said.

Finance Director Beth Moore-Sumners and County Executive Graham Stowe described the practical effect of earlier reserve draws: when the county used Fund 189 and other reserves to balance prior budgets, it reduced the capital account that would otherwise back debt service. Stowe reminded commissioners the county had voted 13–7 previously in favor of an $8.5 million renovation package and urged them to decide whether to proceed or reduce scope, noting construction-inflation costs of roughly $28,000 per month for continued delay.

Several commissioners voiced opposition to raising taxes and asked for alternative cuts; Stowe responded that closing the $1.8 million gap through cuts alone would require eliminating roughly 30 positions or severe service reductions. The transcript records divided roll-call votes on the measures, with a sizable minority opposing the bond term and tax measures.

The county will proceed with issuance steps for the bonds and with implementation planning for the courthouse renovation. The wheel-tax resolution was approved as amended; the commission recessed briefly following the votes to allow procedural processing.

Public commenters were recorded for the meeting (Martin Rapp, Steve Woods and Scott Bailey), but the transcript includes no extended comments from those speakers in the public-record text.

What’s next: the county must complete bond-sale procedures and follow election-timing rules for any tax placed on the ballot, and staff will implement the approved contract amendments and funding steps for the courthouse project.