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Cherokee County adopts school-district tax-levy resolution after bond issuance briefing
Summary
The Board unanimously adopted a constitutionally required ad valorem tax-levy resolution after school system CFO staff briefed commissioners on a roughly $126.5 million bond issue and the district's voter-authorized $290 million borrowing ceiling. The levy serves as a backstop if other revenues fall short.
The Cherokee County Board of Commissioners on May 5 unanimously adopted a School District Tax Levy Resolution after a briefing from the school system's finance representative.
Ken Owen, speaking for the school system’s chief financial office, told the board the school board issued just under $126,500,000 in bonds April 23 to fund capital projects and to refund 2018 bonds to reduce interest costs. He said the issuance is part of a voter-approved authorization of up to $290,000,000 for school capital projects and that approximately $90,000,000 of the authorization remains for capital and refunding uses.
The resolution is required by the state constitution as a procedural backstop to allow the county to levy an ad valorem property tax if the school board were unable to meet debt-service obligations through its usual revenue sources. Owen told commissioners the district already dedicates 1.5 mills to debt service and that roughly 50% of the special-purpose local-option sales tax (SPLOST) is also budgeted for repayment; he said the state would first exercise an intercept program that could withhold state allocations before the county levy would be imposed.
Commissioner Carter moved to adopt Item 13.1, the School District Tax Levy Resolution; the motion was seconded and carried unanimously.
Why it matters: The county’s adoption of the resolution does not change tax rates immediately. Instead, it satisfies a constitutional and procedural requirement that allows the county to levy a property-tax backstop only if the school system fails to meet debt obligations and other remedies have been exhausted. The board and staff noted the district has dedicated revenue streams for repayment and that a renewal measure will also appear on the ballot this fall.
What’s next: The school system will proceed with the bond financing and the county record will reflect the adopted resolution; commissioners said they expect continued public information about any ballot renewals affecting future tax mechanics.
