Colleton County approves up to $15 million in bonds to rebuild reserves after public concern

Colleton County Council voted unanimously April 6 to adopt an ordinance authorizing up to $15 million in general obligation bonds to restore the county’s reserves and pay a maturing bond anticipation note.

At a public hearing before the vote, Lawrence Flynn, the county’s bond counsel, described the structure: a taxable borrowing of roughly $11 million to replenish working capital and a roughly $2.5–$2.6 million tax-exempt piece to redeem the outstanding anticipation note. "General obligation bonds have to be used for anything that, quote, 'meets a public purpose,'" Flynn said, explaining that the tax treatment depends on whether proceeds fund capital projects or working capital.

Resident Carol Black told the council she was "mad" and that people in the county were worried about the finances. "We don't know what the shortfall is," she said, urging clearer information about the county's fiscal condition.

County staff and several council members defended the borrowing as a measured step to avoid repeated short-term borrowings for payroll and other operating needs. A staff member said administration plans to upgrade the county's financial software to provide real-time, public-facing transparency so residents can see reserves and expenditures online. One council member noted the county has previously invested in long-term economic projects such as the county-owned rail line and said the borrowing is intended to restore fund balances while the county's economic prospects improve.

Flynn walked the council through the constitutional debt-limit mechanics discussed at the hearing, saying the county's assessed-value-based debt limit equates to about 8 percent of the assessed base and cited an available borrowing capacity number staff provided. He said the proposed structure aims to replenish reserves within a short-term window so the county will have cash for emergency response and working capital without repeatedly issuing short-term notes.

Council completed third reading of the ordinance and carried the measure by voice vote; members announced it passed unanimously. The ordinance authorizes staff to solicit competitive bids for the bonds and to award based on open market offers, with closing targeted to occur quickly so the county can pay the anticipation note when it matures.

Next steps: the county will solicit bids under state law and close the financings in the near term. Council also said it anticipates scheduling a budget workshop in the coming weeks to allow further public review of the administration’s fiscal plan.