County talks $19.7 million capital plan
By Steve Herring
Published in News on May 30, 2016 1:46 PM
Wayne County's proposed five-year, $19.7 million capital improvement plan would add $3 million in new county debt that would be somewhat offset by 2020 when the county's current indebtedness will drop by more than $2 million annually.
County Manager George Wood presented the proposal to Wayne County commissioners recently during a special session called to present the board with his draft budget for fiscal year 2016-17.
The $148,292,780 budget proposal includes a slight tax rate cut from 66.50 to 66.35 cents per $100 of property value. It is open for public inspection at the county clerk's office on the fourth floor of the Wayne County Courthouse Annex.
For the most part the projects in the capital improvement plan would be paid for through a mix of local, state and federal funds.
Nearly half, or $9.5 million of the $19.7 million, would be budgeted in 2016-17, including $5.5 million for a new E911 call center.
Another $1 million is for emergency management and emergency medical equipment, vehicles and station buildings.
That total includes $250,000 for each of the next three years for free-standing EMS stations.
Other big-ticket items for 2016-17 include $255,667 for roofs on county buildings; $318,000 for information technology improvements; $224,186 for vehicle and equipment replacement for the sheriff's office (a total of $828,041 over the next four years); $687,000 for trucks and heavy equipment at the county landfill; and $766,000 for equipment and improvements at the Wayne Executive Jetport.
The $5.5 million for the E911 call center includes $2.5 million for equipment and $3 million for the center.
Current revenues/fee would provide $1 million of the cost while grants and state and federal funding would account for another $1.5 million.
The remaining $3 million would be through loans.
"The only debt on here is an installment purchase contract for $3 million if we move forward with the 911 center," Wood said. "Again, that debt would be paid from that $2 million in savings we just talked about."
Commissioner Joe Gurley asked how much the $3 million would cost annually. It will be between $200,000 and $225,000, Wood said.
However, Wood reiterated that the county's debt would drop by more than $2 million annually by fiscal 2020.
"The reason that is important is if we start the debt service payment on the ag center and possibly these (county) schools in '18, we only need to bridge two years, fiscal year '18 and '19 and then our debt service declines by $1.4 million (and later by more than $2 million)," he said. "That is going to free up money to help pay for the Maxwell Regional Agricultural and Convention Center and also the 911 center.
"So I wanted you to be aware of that because I know everybody has been concerned about how are we going to afford that."
Chairman Joe Daughtery said that means the county would only have to cover two years of extra debt. Wood said that is correct.
"In worse case, you could use fund balance (to cover the loan cost)," Wood said. "But you will have additional revenue growth to offset some of that. But if you have to, you can use fund balance. Then after that you are saving far more than we need for that and you can actually pay some of that balance (back), if you use it."