HomeMy WebLinkAboutC.054.93011_0196 (2)Dr. Holliday said there were many instances where the LGC had approved "shaped debt."
He said that conversations had occurred with the LGC, and he knew the Pitt County School
project had used a funding proposal similar to what had been presented. Holliday asked for the
county and school staff to work together with the Local Government Commission.
Parker said there appeared to be conceptual questions, and the two staffs could address
these.
Johnson said there were many needs in the county, and at some point, the jail facility
would need improvements.
Dr. Cash suggested that the county and school finance directors, along with the
superintendent and the county manager, meet to determine what was a reasonable proposal.
Johnson said he would like for the county staff to review the proposal. He mentioned
that he didn't feel it could be done without a tax increase. He suggested that the county staff
prepare the necessary information using the revenues that would be available, and then, the
school officials would be notified.
Williams said the concept had been discussed, but he didn't feel the taxpayers should be
left out of the process.
Dr. Serene said no one on the school board was selling out the taxpayers. She said it was
her belief the proposal could save money.
Blumenstein said that in costs, a COPs issuance was comparable to a GOB. She said that
with a GOB, the Local Government Commission sold the bonds, and they (bonds) could be
spread out over a seven-year period. Blumenstein said that with a COPS, the issuer went to the
market one time unless there were multiple issues. She said a COPS had costs for an
underwriter, costs to insure the bonds, and costs for the Preliminary Official Statement (POS).
She said a GOB didn't have these expenses, because the LGC handled the transaction.
Holliday said that with a GOB, the county would be getting whatever interest rate was
available. He said the school system was willing to use either method, but it preferred a COPS,
because it saved money.
Williams said there wasn't that much difference in costs, and this was why he preferred
to offer the decision to the public through a General Obligation Bond.
Johnson reiterated that the county's finance director would do the computations, and then
he (Johnson), would notify Dr. Cash of the outcome.
ADJOURNMENT: The meeting adjourned at 6:00 p.m.
Approved: elz av
Clerk to the Board
Note: A complete listing of the facilities to be addressed in the Iredell-Statesville School
System's $124 million plan may be found in the commissioners' minutes dated
February 13, 2004 (Book 9, Pages 325 & 326).