Batesburg-Leesville council authorizes financing for water meter replacement project

The Batesburg-Leesville Town Council on Jan. 12 approved a second-reading ordinance authorizing financing for a water meter replacement and upgrade project, giving the town manager authority to accept a financing proposal. The motion passed 6–1, with District three recording the lone no vote.

Placement agent Brent Roberts of Steel Nichols summarized five bids presented to the council: Truist at 4.15% (20‑year amortization with a 10‑year bullet maturity), First Bank at 4.82% (20‑year fixed), South State at 4.12% (20 years with two rate resets), Capital One at 4.99% (20 years fixed) and Huntington at 4.19% (10 years). "What’s the best deal depends on whether your priority is certainty for 20 years or the lowest payments in the first 10 years," Roberts told the council.

Emily Luther of Parker Poe, serving as bond counsel, told council the ordinance gives the town manager latitude to accept and, if needed, negotiate a bid after council approval. "The ordinance authorizes the town manager to accept the bid," Luther said, adding that the manager may continue discussions with bidders as permitted by the ordinance.

Several council members questioned whether a lease‑purchase versus revenue bonds was the right structure and how payments would be charged. Counsel and the placement agent explained a lease purchase is "subject to annual appropriation" under state law and thus is not structured as a traditional bonded pledge; lenders, however, will view the obligation as something that must be repaid. Town Manager Jay Hendricks recommended choosing a fixed 20‑year structure to avoid balloon‑payment risk and to preserve the option to prepay without penalty where available.

Council discussion also covered total payback estimates (presented by staff as roughly $4.59 million depending on the option), potential prepayment penalties on some offers, and short acceptance deadlines in some proposals (Roberts noted deadlines ranging from the next business days up to Feb. 12 for specific offers). One council member urged placing a cap on manager authority; others argued the manager was hired to make these finance decisions and endorsed providing guidance rather than amending the ordinance.

The ordinance passed on second reading with a roll-call tally of six yes and one no. The council’s approval authorizes the town manager to accept a financing offer within the ordinance’s limits; the manager will notify council and proceed with the selected financing subject to the timelines and conditions in the accepted bid.