Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the School Finance topic
No spam. Unsubscribe anytime.
Chilton County approves ordinance to continue school sales tax so Board can seek about $40 million in borrowing
Summary
The commission unanimously adopted an ordinance continuing the countywide school sales tax so the Board of Education can secure roughly $40 million for a career-tech facility, a competition gymnasium at Thorsby High and additional classrooms; county officials said the county is not a guarantor of the debt.
The Chilton County Commission voted unanimously to adopt an ordinance continuing the countywide sales tax dedicated to public schools so the Board of Education can pursue roughly $40 million in borrowing for capital improvements. Cain Burnett, attorney for the Board of Education, told commissioners the request is driven by planned projects including a new career-technical facility, a competition gymnasium at Thorsby High School and additional classrooms to meet growth in that part of the county.
Burnett, who identified himself as counsel for the Board and said he represents the Board of Education, told the commission the borrowing “would be payable solely out of this sales tax proceeds” and the county would not be a guarantor or co-borrower. “This resolution simply has the county agree to continue the levy of the tax for the term of the debt,” he said.
Under the plan Burnett described, the Board expects to pursue a 30-year borrowing. Because the county’s education sales tax is currently scheduled to expire in 2043 or 2044, the ordinance would effectively extend the tax by about 12 years to cover the full term of the bonds, he said. Burnett said that, unlike general-obligation borrowing by cities or counties, boards of education under Alabama law must select a local tax to pledge when entering the bond market.
Commissioners read the ordinance aloud before taking a voice vote. The ordinance cites Sections 40-12-4 through 40-12-7 of the Code of Alabama (1975) as the statutory framework cited at the hearing. After brief clarifying comments about wording to avoid obligating future commissions to reapprove the tax mid-debt, the commission adopted the ordinance by unanimous voice vote.
A companion resolution confirming and ratifying the countywide school sales tax in Chilton County was moved, seconded and approved unanimously at the same meeting. Commissioners did not take any action to place a new local referendum; according to the attorney’s remarks, the action before the commission is limited to continuing the levy so the Board can secure the financing.
