It doesn’t make sense for the Laurens County Council to do what the voters told them to do - renovate the exterior of the Historic Courthouse - without finishing the job - renovating the interior of the iconic building - Council Member David Tribble said Monday in the face of questions about a $35 Million county-funded expense that will complete the courthouse project.
It could raise taxes $4 a year on a median-priced house, although county officials do not expect that to happen in light of “good stewardship” of the county’s money.
District 2 Council Candidate Dale Stetz used the public comments section of the regular monthly meeting to question the expense - a Bond to be used by a corporation created for just this work, the Laurens County Public Facilities Corporation.
It is for interior courthouse renovations and a build-out of a former grocery store that now houses the county’s veterans’ and elections’ offices, and will house emergency management.
Council has had this expense on its mind for months; but the April 8 meeting was a public hearing, and 3rd and final ordinance reading, for the project. No one expressed an opinion, pro or con, during the public hearing, and the ordinance motion passed, 6-0.
Stetz asked a number of questions, and Chairman Brown Patterson answered as many as possible during a council comments time. He didn’t answer what the interest rate will be when the bonds are issued, and when the bonds will expire.
Pages and pages of legal documents accompany the ordinance, and one document says no bonds will mature later than Sept. 1, 2055**.
Stetz called the council’s actions, in adding debt, “a fiasco.”
The County is not required to conduct a referendum if it raises money, and exceeds its legal debt limit, with an arrangement like this.
It funds Phase 3 of the Historic Courthouse renovation; and Phase 2, which is what Tribble was referencing, is the exterior renovation supported by the voters-approved Capital Projects Sale Tax*.
Mashburn Construction which is doing the exterior was retained and kept on-site to do the interior. Council used to meet in this building’s second story courtroom; now it has relocated to the Veterans/Voters center, also known as Hillcrest East, while the Historic Courthouse is under renovation.
Stetz said the $35 Million debt will make property taxes go up, and expressed the opinion that industries should help shoulder the burden through the fees they pay instead of taxes.
Patterson said one industry’s fee, based on investment, could bring in what all the property taxes combined bring in so, yes, industries are helping shoulder the burden.
This is reminiscent, Stetz said, of School District 55 asking for approval of a school bond referendum, then not providing information on how the money would be spent.
“What is the board of directors to oversee the debt? What is the selection criteria? Will the county council appoint (their) relatives; is there financial compensation or perks?” Stetz said.
“The only difference with the school board is they went with a referendum, but you did not offer the chance for people to vote. Why deny the right to vote?”
The County is using a state law-approved arrangements called an Installment Purchase Transaction to make this investment happen. A document lists just two people associated with the newly formed corporation - Barton Holmes as president and Cheyenne G. Noffz as secretary.
The corporation will draw down on bond proceeds and oversee the renovations and construction, while the County pays the corporation money that repays the debt. The County can pay it out early, or it can end the arrangement through a non-appropriation and pay for the work to that date. One council cannot bind a future council to a debt of this kind.
The ordinance is 9 pages, the Installment Purchase & Use Agreement is 42 pages, the Base Lease Agreement is 13 pages, and the Trust Agreement between the Corporation and U.S. Bank Trust Company, National Association, is 66 pages.
There also is an 11-page document outlining the duties of Digital Assurance Certification, LLC, as the Disclosure Dissemination Agent for the bond holders.
County Administrator Thomas Higgs is designated as the county’s agent for all applicable agreements. The legal work is done by the Pope Flynn law office in Columbia.
Patterson said the county expects to receive a favorable interest rate because of a recent upgrading of its credit rating. He said “good stewardship” of Laurens County’s money makes it possible for the county to acquire this new expense at this current time. The County also is drawing additional tax revenue from housing developments under construction mostly in Northern Laurens County, although some are in Laurens and Clinton.
Patterson said he doesn’t expect this to happen, but if the expense leads to a tax increase it would be no more than 3 mils - equating to a $4/annual increase for a $100,000 house (half that for a $50,000 house; twice that for a $200,000 house).
The Council at the April 8 meeting gave its next budget 1st reading approval “by title only,” although the ordinance is filling with red-letter TBD listings for revenues and expenses. The ordinance requires 3 readings to pass.
Budget discussion begin on April 20 for the Laurens County Council and its departments.
A budget line-item will have to be added for payments to the Laurens County Public Facilities Corporation.
Final approval for the $35 Million bond arrangement was given by a 6-0 vote. Absent was member Luke Rankin, who is retiring from the council as a candidate for the SC House seat vacated by Stewart Jones, who is running for the US Congress seat being vacated by Jeff Duncan. Stetz and Matthew Brownlee are candidates for Rankin’s District 2 council seat in the June Republican primary.
*The Capital Projects Sales Tax was approved by a majority of voters in the November, 2020, election. It expires 8 years after the 2021 date when it went into effect and finances 16 community-benefit projects. Some like parks and a new sheriff’s office evidence-storage building have been completed; some like a new Clinton Library and the county’s first-ever Agricultural Center are under construction.
**The documents are under the April 8 agenda packet on the county’s website - go to Council - Administration - County Council - (far right) Current FY Agenda & Minutes - 4-8-2024 Agenda Packet.
