Commissioners hear bond

options for new WHS
By Scott Nicholson
nicholson@wataugademocrat.com

During their regular meeting on Monday, the Watauga County commissioners reviewed a variety of bond packages to borrow $70 million to build a new high school.

Finance director Doris Isaacs presented three options from the preferred bidder, with one at 4.14 percent and two others at 4.17 percent, including one that would lock in the interest rate if the county met its payments over the first three years of the loan.

The options include splitting the loans into portions of $45 million and $25 million, which would give the county flexibility in repaying the loan.

BB&T’s bid was $41,000 lower for the loan than competitors, Isaacs said, and she indicated the Local Government Commission was “very happy” to see the low bids. The LGC must approve any bond, and the county would face a pre-payment penalty for the first 10 years on one of the loans. Isaacs said other bond packages were over 4.8 percent, and commission chairman Jim Deal said the county’s improved bond rating had allowed it to borrow money at a lower interest rate.

Isaacs said the debt service cost is lower than projected and the county was saving on interest and will allow the county to sell the former high school and use that money to pay down part of the loan without penalty.
Total cost of the bond, if paid over 20 years, would have ranged between $100 million and $102 million, according to installment purchase contracts submitted by BB&T.

However, under the county’s plan to split the loans into two separate agreements, the county can pay off the lower amount after the current high school is sold and save up to $10 million in total interest payments over the life of the loan.

The board also approved $160,150 to pursue LEED certification for green-building techniques at the new high school. Appalachian State University has agreed to provide engineering services that will save the county up to $200,000 and provide hands-on educational opportunities for both ASU and high school students.

Deal said pursuing the certification was sending a positive message to the students who would use the school.

“We should be environmentally conscious,” he said. “We should be energy conscious.”

The board also agreed to accept credit for water-allocation rights to the existing high school and transfer them to the new facility, saving the county $57,640. The county will release any claim to water at the site, leaving water connections as a responsibility of the future property owner when the property is sold.

Commissioner Winston Kinsey said there was concern that giving up the allocation could make it harder to sell the property, but Deal said the town of Boone’s water-use agreement with Appalachian State University would make an extra 400,000 gallons per day available. Deal said he was confident the town would have an interest in seeing the property developed so it could add to the property tax base.

In other business...
•Kara Simmons, chairwoman of the Juvenile Crime Prevention Council, said local programs that help keep juveniles out of the court system could be in danger. Simmons said the programs could be affected by changes in the state budget, including the loss of recurring funds. The programs receive about $118,000 each year that goes to programs aimed at service gaps and community needs, which undergo an annual review. The county provides a 30-percent funding match.

Simmons said there would be a negative impact felt on all social services department but particularly in programs directed at youth. Last year, the various programs served 121 children, and Simmons said some programs would be reduced or eliminated if state funds were cut. The state funds will be debated in the short session of the General Assembly in May.

Deal asked Simmons to write a letter to state legislators outlining some success stories to show the effectiveness of the programs. Kinsey said community service was a valuable program, and Simmons said it was sometimes a way of “paying back to the community.”

•Kent Graham of the Blowing Rock Rescue Squad presented a request for part of $21,359 in local funds for technical rescue equipment. The squad received a grant for $43,000 and Blowing Rock has agreed to provide $5,000 and $2,5000 for the Caldwell County Rescue Association. Graham said the equipment, including a trench-rescue unit, would be used by the entire county. The commissioners approved the request.

•Mike Vannoy presented a report on the Criminal Justice Partnership Program, saying the program had a 72-percent success rate in helping youngsters who have substance-abuse issues stay out of further legal trouble.

Vannoy said it cost $30,000 a year to house a prisoner while the program cost $61,000 at no match for the county. The program saves money by targeting prevention in nonviolent offenders with substance-abuse problems. “That adds up to thousands and thousands of dollars every year,” Vannoy said.

Vannoy said state money would be tougher to get because some programs across the state hadn’t been as effective, with an average success rate of 40 percent. He said combined efforts of the Department of Social Services, New River Behavioral Healthcare and the court system had led to the high success rate in Watauga County.

•Nancy Coffey, a volunteer with the county’s Animal Control, asked the commissioners to change the department’s name to Animal Care And Control to recognize the department’s work in ensuring animals are humanely housed and treated. “You can see there’s a new face on animal control,” she said.

Coffey said the department worked closely with the Humane Society and helped find homes for adoptable animals while enforcing laws addressing wild animals. She said the department has one of the highest adoption rates in the state. The commissioners approved the name change.

Last year, the Animal Control Department handled 1,456 animals, euthanizing 76 dogs and 359 cats. Another 434 animals were transferred to the Humane Society, and 402 were adopted.

•The commissioners approved a Help America Vote Act grant of $44,818 for labor, equipment and system enhancements in anticipation of a busy election year. “We feel we will have a heavy turnout in both the primary and the election,” elections director Jane Hodges said, and noted the board was in the process of creating a new precinct.

She noted the optical-scan system installed in Watauga County had proven effective and provided a paper back-up of ballots. She said barring any changes to state law, the county’s voting equipment should be satisfactory for the near future.

•The commissioners approved bids for three county vehicles totaling $50,706. The vehicles purchased from Ashe County Motors will be used by the Animal Control Department, Tax Department and Maintenance Department.

•The commissioners appointed Joe Robinson, Tim Eggers and Bill Hollingsworth to the Watauga County Recreation Commission. George Miles was reappointed to the Watauga County Nursing Home Community Advisory Committee and Pat Taylor and Angie Greene were reappointed to the Watauga County Adult Care Home Community Advisory Committee. The commissioners scheduled their next regular meeting on March 18.