HomeMy WebLinkAboutC.054.93011_0195 (2)Williams said he had been a school board member and a member of the board of
commissioners, and that to him, the current COPS method of approximately $30 million every
three years was a good program.
Dr. Cash said it appeared the two boards had never had a long-term plan regarding school
facilities. Cash said he especially did not like having to spend money for mobile units, and the
lab centers in the schools needed improvement. He mentioned that perhaps the county manager
and the superintendent could meet to work out the finances.
Madison asked how much of the 5124 million would be applied towards Statesville High
School.
Dr. Holliday said it would vary, but it would cost between $24 to $26 million, regardless
of whether it was rebuilt or renovated. He said the proposed new South Iredell High would cost
the same amount, and that Lake Norman High had been built for $24.2 million.
Johnson said he had lived in Iredell County for 23 years, and it was evident to him that
everyone always thought someone else was getting the benefit from all of the money. He said
the revenue projections provided by the county's finance director in February did not look too
promising, and for next year, there was only a two percent growth expected in sales taxes.
County Finance Director Blumenstein then shared a sales tax spreadsheet. She said the
half -cent sales tax was dependent upon the state's economy.
Dr. Holliday said his finance officer had taken into account the decreased projections,
and the proposal was still feasible.
Johnson said he had the following concerns about the $124 million plan.
1. The 2002 half -cent tax is not new revenue. It merely reimburses the money already
owed to the county. (Governor Easley previously withheld $3.2 million.)
2. The proposal indicates there would be reduced operating costs. How can this occur
when new classrooms and facilities are going to be built? Also, the plan doesn't
allow for any repairs to the existing buildings.
3. The plan's amortization schedule has no payment in 2005 and only interest in 2006.
The principal is deferred until 2007, and the annual payments are "relatively level"
and not `level principal." It is questionable whether or not the Local Government
Commission would approve this type of debt structure.
4. The Local Government Commission has guidelines pertaining to a county's
reasonable debt burden. (Existing debt service is 9.86% of the county's general fund
expenditures. The $124 million would increase the debt to 18.03%, and this would be
3.03% over the recommended amount of 15% for Iredell County.)
5. The county had been burdened by increased Medicaid costs ($1.5 million increase).
Blumenstein then shared several revised amortization schedules with information
provided by the school's financing consultant.
Johnson said, after reviewing the schedules, that in the first year of payment there would
be a deficit of $5.7 million.
County Manager Mashburn said that in the past, the LGC had told the county staff
numerous times, it could only recommend level principal methods for debt that was to be repaid
out of the general fund. He said the projects previously referred to by Dr. Holliday, for example
the Charlotte Arena, had a dedicated funding source. Mashburn said an amount of $124 million
would have to be in the form of a General Obligation Bond (GOB), and this had been indicated
by the LGC. He said that if the GOB failed, the LGC stated it would be glad to work with the
county in a piecemeal fashion.