TMU asks commissioners to authorize tax exempt bond issuance

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CLEVELAND, Ga. – White County Commissioners heard a request from Truett McConnell University Vice President for Finance and Operations Jason Graffagnino at Monday’s work session to approve a bond issuance that would allow it to refinance its long term indebtedness at a considerable savings.

The issuance would be through the White County Development Authority and must be approved by the Board of Commissioners but it does not obligate county taxpayers.

“We are looking into refinancing long-term debt tied to a major project we did in 2011,” Graffagnino said. The project included construction of a new dormitory, expanding the dining hall and administration building and the addition of a new student wellness center.

Graffagnino said the current bond is being paid back at a rate of between 5.75 and 6.0 percent.

“In the current economic environment, we have done our due diligence and through a public bond offering, we are able to ascertain a long term rate for 30 years at 3.6 percent,” he said. “As Mr. Chairman (Travis Turner) said and Mr. Manager (Michael Melton) said, this does not encumber the citizens of White County or the citizens of Cleveland. The collateral is the University. We are taking financial responsibility It will be a tax-exempt offering. For that to be something the public can invest in, and buy tax exempt bonds, we need a government authority to be the issuer so that is why we are coming before you.”

The Board generally discusses issues during work sessions then votes on them at the next regular session.

Commissioners also discussed future options for the administration of county elections since Probate Judge Garrison Baker, who currently oversees elections, will retire at the end of 2020.

A number of agenda items were placed on the consent agenda for the next meeting, including:

A request by Director of Public Safety Director David Murphy to place some obsolete equipment belonging to his department to be sold as surplus;

Bids received for two certificates of deposits currently held by United Community Bank.

Most of the rezoning requests on Monday’s agenda also will be placed on the consent agenda.

Commissioners will place one request for annexation into the city of Cleveland and another by the City of Helen under New Business and vote on them separately at the next meeting.

 

 

 

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