The Cobb County Board of Education agreed 7-0 on Dec. 13 to borrow $90 million in advance for substantial savings on various construction projects.
However, the cost will be determined before the vote on Jan. 17, according to Chief Financial Officer Brad Johnson of the Cobb County School District.
Construction and other Special Purpose Local Option Sales Tax (SPLOST) projects currently are scheduled and paid using SPLOST funds that are collected on a monthly basis throughout the year.
Yet it is estimated that construction costs in Cobb County are increasing four to five percent each year, Johnson said.
By borrowing funds before the receipt of monthly SPLOST collections and also starting projects at the beginning of a calendar year, it is estimated that construction projects could be accelerated and be less expensive, resulting in substantial savings to the school district, he added.
Approval will allow SPLOST V construction projects to be bid earlier to capture savings in the current construction market, Johnson explained.
The acceleration plan proposes the issuance of $90 million in short-term construction notes for calendar year 2019, but they will be due before Dec. 31, 2019.
CCSD’s financial advisor, The PFM Group, and CCSD’s bond counsel, Murray Barnes Finister LLP, have prepared documentation relating to the short-term construction note offering to solicit competitive bids for the sale of the construction notes.
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