General Obligation Bond

Ordinance #12-29-17:  An Ordinance to provide for the issuance and sale of General Obligation Bonds of Newberry County, South Carolina not exceeding $1,325,000 in aggregate principal amount, to prescribe the purposes for which the proceeds of said bonds shall be expended, to provide for the payment of said bonds, and other matters relating thereto.

Second Reading

This General Obligation borrowing addresses several projects or portions of projects approved as part of the current fiscal year’s (FY 17-18) budget: scalehouse construction ($60,000), IT suite construction ($30,000), DHEC/DSS building renovations ($54,000), Old Jollystreet Road bridge replacement ($94,422), Mid-Carolina Commerce Park irrigation system ($30,000), Mid-Carolina Commerce Park pad readiness for Lot #14 ($481,578), detention center renovations ($500,000).  The balance of the funding ($75,000) is for bond issuance costs, though it is not anticipated that all of this amount will be needed.  With some existing bonds being paid out in the near future and interest rates remaining relatively low, it makes sense to borrow for these projects as opposed to expending cash reserves, which are better left closer to six months’ operating expenses. Cash reserves could become particularly important with the upcoming jail renovation project, as inmates and detention center officers may be re-routed to alternate facilities, creating new operating costs.

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