Florence 05 board adopts 8% bond resolution, chooses three-year term

The Florence County School District 5 Board of Trustees voted to adopt an 8% general obligation bond resolution authorizing up to $1,475,000 without voter approval and selected a three‑year repayment term.

Amy Bindner of 1st Triad Advisors told trustees the district currently has about $7,500,000 in outstanding general obligation debt and that the district's 8% statutory capacity is roughly $1,496,000. "So the resolution that you have before you tonight is authorizing $1,475,000 not to exceed amount," Bindner said, then reviewed three amortization scenarios assuming a 4% interest rate.

Bindner said a three‑year amortization would require annual debt service of about $533,000 and raised the district's total debt‑service millage by roughly 31 mills on top of existing levies, producing nearly 60 mills of total debt service millage. She contrasted that with a five‑year plan (about $334,000 annual debt service; ~20 additional mills) and a seven‑year plan (about $251,000 annual debt service; just under 15 additional mills). To illustrate household impact, she calculated that for a $200,000 home the three‑year option would cost about $251 a year (about $20 a month), the five‑year about $158 a year ($13/month), and the seven‑year about $118 a year (just under $10/month).

Board members discussed trade‑offs between minimizing long‑term interest costs and limiting near‑term millage increases. Several trustees said they preferred the three‑year term to rebuild 8% capacity sooner. Committee member (S7) moved to adopt the 8% bond resolution with a three‑year term; Chair (S1) seconded, and the motion passed on a voice vote (ayes recorded; individual tallies were not specified in the transcript).

Bindner outlined the proposed timeline if the board proceeded: adopt the resolution, issue an RFP to lenders (she said they would send the request to roughly 30 banks), receive bids within weeks, and aim to close by early September so the millage could be placed on the tax roll if desired. She also noted that the district currently had no outstanding debt issued under the 8% capacity that would reduce available capacity.

The board did not set the millage immediately; members approved the resolution and left the exact financing schedule and final term structure to staff and advisors to complete in the weeks ahead.