By Nick Nunn
The Morgan County Building Authority (BA) accepted a proposal for a 10-year, 4.5 percent interest loan for $2,500,000 from State Bank & Trust during their Dec. 10 special called meeting.
After approving the loan proposal, the BA also approved a resolution for the issuance of a $2,500,000 taxable revenue bond for the purpose of refinancing Morgan County’s debt to Government Employees Benefits Corporation of Georgia (GEBCorp).
The BA also authorized chair Ellen Warren to sign any paperwork necessary for the creation and validation of the bond.
Morgan County Attorney Christian Henry stated during the meeting that the bond proposition is “seemingly complex” but that the procedure is simply a “mechanism” through which the county is able to borrow a large sum of money.
The BA then approved of an engagement letter with Murray, Barnes, and Finister, LLP, which states that the BA will pay the practice $40,000 for their assistance with the bond issuance.
Lori Sayer, Morgan County Finance Director, stated that the loan and associate bond does not create new debt, it simply refinances the amount owed to GEBCorp to fully finance the county’s retirement benefit.
Commissioner Andrew Ainslie added that the county is “serving the taxpayers by servicing [the debt] this way.”
The BA then closed their meeting in order to resume the Morgan County Board of Commissioners (BOC) meeting.
The BOC then voted to approve a resolution to approve and authorize the sale of the Morgan County Administration Building as well as the execution, delivery, and performance of an installment sale agreement with the BA, which directly pertains to the bond created by the BA.
Henry stated that resolution authorizes the BOC to sell the administration building to the BA.
The installment sale agreement creates an intergovernmental agreement between the BOC and the BA, which sets up the BOC to pay the debt service on the bond in relation to the payments necessary for the BA’s loan with the State Bank & Trust.
According to Henry, the bond still has to go through a validation process before it can be issued, and that Jan. 9 is the tentative closing date for the bond.