HomeMy WebLinkAboutC.054.93009_1827 (2)Mr. Long said the loan would be repaid from the Bond funds when received from the State.
If the money comes in early (before 2000) reimbursement will occur at this time. When asked
about the number of mobile units Long said, "Brawley has two at present but will have ten by the
end of the summer. Mt. Mourne has three mobile units. Lake Norman has 6 mobile units now and
will have 14 by the end of the summer. It is predicted that Lake Norman will not have any units
removed - - even after construction is completed. Shepherd School has three mobile units that can
eventually be moved to another location."
Long shared calculations done by the school system which indicated that by obtaining the
bond money now there would be a "savings of borrowing over the inflation of construction costs"
in the amount of $363,458.90. He mentioned another incentive to borrowing now was that the
amount of "lost purchasing power" would be $472,700.
Mr. Mashburn mentioned that bond counsel (Brown & Wood) typically charged about
$5,000. He mentioned this application would be easier than the Certificates of Participation and that
a public hearing would probably be needed.
Commissioner Boone said he understood the State would authorize the County to borrow the
money from a commercial lender. The money would be turned over to the schools. When the
schools received the bond money from the State, the County would be reimbursed. "We would be
borrowing money on borrowed money."
MOTION by Commissioner Fortnerto proceed with the grant anticipation notes and appoint
Brown and Wood as bond counsel for the legal work.
Boone asked who would pay the closing costs. He also mentioned attorney fees and any
overtime for staff. Fortner said the county staff involved would not be accumulating any overtime.
Stewart said the process seemed to be a "paper trail." Mrs. Stewart said that by the growth occurring
and the predictions by the school staff that mobile units would still be retained at the some of the
schools (even after additional classrooms were built) that the commissioners would have to look at
a plan and start "all over again." Mr. Long said the redesign of attendance lines would aid in some
areas. Also, the purchase of land from the $2.2 million allotment.
Commissioner Boone asked Commissioner Fortner if she was including the closing costs in
her motion. Commissioner Fortner said this was not included.
AMENDMENT TO FORTNER'S MOTION BY BOONE] Commissioner Boone moved
to amend the previous motion by including the closing costs. Vice Chairman Johnson said his
understanding of the Motion was that it was now to proceed with the loan anticipation application
and from that amount of money, interest would be paid, attorney fees would be paid, and bond
counsel would be paid.
VOTING: Ayes - 4: Nays - 0.
Mr. Long asked for a clarification of the motion. He asked if the schools would have to pay
the interest expense. Commissioner Fortner said she did not say this - - she said she did not agree
with the interest costs.
Commissioner Boone said that two years from now, when the note was due, he was
assuming the school board would reimburse the County for the full amount of the debt service
(interest). Commissioner Fortner said this was not her understanding. She understood that this
budget year (1998-99) $117,360 would have to budgeted for interest. In 1999-00, another $117,360
would need to be budgeted. In 2000-01, the amount of $78,135 would be due in March. The total
interest amount would be $312,855.
Commissioner Boone asked Commissioner Fortner if her intention was to increase the
school's appropriation (during the next three years) by $300,000 in addition to what was already