ROCKINGHAM — Richmond County is one step closer to refinancing its debt and saving about a half-million dollars in the coffers.
The Board of Commissioners on Tuesday approved an installment financing contract with JP Morgan Chase Bank, which will advance the county $20 million to pay off $18.6 million in existing debt.
According to the contract, interest will be calculated at an annual rate of 1.41%, subject to adjustment.
The installment payment schedule and description of the mortgaged property are not included in the version of the contract included in the agenda packet. It appears the final payment is slated to be made in 2022.
The bonds being redeemed and refunded are:
- 2012 Limited Obligation Bonds – $6,940,000
- 2015 General Obligation Bond – $3,863,000
- 2017 Installment Financing Contract – $1,200,000
- 2015 Installment Financing Contract – $1,122,000
- 2016 Special Assessment Bond – $844,820
- 2016 Installment Financing Contract – $1,190,000
- 2017 Revenue Bonds – $3,510,695
Bond Counselor Bob Jessup, of the law firm Sanford Holshouser, said the financing is expected to close the first week of January 2022 and added that the Local Government Commission had approved the county’s application earlier that day.
The refinancing project started at the November meeting, with the board being presented several proposals.
“This has been a goal of ours for a few years now and we continue to chisel away at this debt burden,” County Manager Bryan Land said, adding that the net present savings would be around $540,0000.
PROPERTY TO BE REVALUED
It’s getting about time for properties to be revalued and Tax Administrator Vagas Jackson said his office is planning to start the end of January or early February.
State statute requires that revaluations be completed at least every eight years and the county last had it done in 2016, Jackson said.
The goal, Jackson added, is to “distribute overall tax burden throughout the county in a way that is fair and equitable.”
Jackson’s office has bids from three companies — at varying prices and services — to complete the task.
The lowest bid is from Greenville-based Piner Appraisal at $395,000. That price tag would cover all industrial and commercial as well as half of the residential revaluations, working with Tax Office staff.
Jackson said he prefers to have his staff involved “just because they know the people.”
“It always works better if you have a member of our staff who has a Richmond County shirt on,” added County Manager Bryan Land.
Some counties want “turnkey” services, Jackson said, “but we do like to be involved.”
“I haven’t been involved with a reval that my staff hasn’t been involved with,” Jackson said.
Vincent Valuations, one of the state’s largest firms, would charge nearly three times that amount ($942,896) to do everything with no help from the Tax Office, Jackson said.
The highest bid of $1,172,678 is from Virginia-based Pearson’s Appraisal Service, which Jackson said handled the county’s revaluation in 2004.
“Right now, with the way values are going up, county’s are being forced to do it because their sales ratios are dropping so fast,” Jackson said, adding that Richmond’s is also dropping. “It has been a footrace to get reval companies to even present a proposal, because there’s so many counties that’s having to do revaluations.”
Commissioner Rick Watkins asked if the county and the smaller company have adequate staffing “to carry out those responsibilities … (and) fulfill the promises to the citizens in
Richmond County and this board that they can get the job done in a timely fashion?”
Jackson said his office is fully staffed as is the company’s.
Also related to taxes, the commissioners approved a resolution to extend the tax listing period to April 15.
LEADERSHIP REMAINS THE SAME
At the beginning of every December meeting, the board votes on the leadership for the upcoming year.
Despite Commissioner Andy Grooms nominating Commissioner Rick Watkins for chairman and Toni Maples for vice chair, Jeff Smart and Justin Dawkins retained their respective offices.
Both Smart and Dawkins are entering their second year on the board, as are Grooms and Maples.
