$30 Million Loan Will Pay For New Cleveland High School
Johnston County Commissioners have agreed to borrow $30 million to pay for a new Cleveland High School. However, in borrowing the money, the county can’t rule out a possible property tax increase to cover the debt. Higher costs for steel and petroleum products have pushed prices way up for proposed high schools in Cleveland and Corinth Holders. Voters had approved $60 million in a 2007 school bond referendum to pay for both schools at a price tag of $30 million each. However, construction cost estimates have risen to about $45 million for each school. By shifting most of the money from the bond to the Corinth Holders project and borrowing $30 million for the Cleveland High, both schools can be built and opened by the fall of 2011. But it could come with as much as a three cents tax increase. “Certain financial models show the possibility of that,” County Manager Rick Hester told WTSB, “but in the past we have been fortunate enough to absorb that, and we hope to do that this time.” The County will borrow $30 million from First Citizens Bank at 4.14 percent and repay the note over a 19-year period. Commissioners hope to use lottery funds to make the annual payments, however the county’s proceeds from the state lottery vary each year. Commissioners unanimously approved the loan with Commissioner Jeff Carver recusing himself due to being a board member of First Citizens Bank.
Wednesday, August 06, 2008
Tax hike alert!
Johnston County property owners are about to take it on the chin again. I have no frickin' idea how construction costs can suddenly go up by 50%, but I do believe we are getting hosed. Now we are going to pay for it. Thanks, Johnston County. My taxes are about to go up yet again. I just got an increase in property taxes two years in a row from Selma. My electricity bill just went up 11% or so. My trash collection just went up another $2 a month. Now our property taxes for the county are about to go up because of a school being built with 50% cost over runs. Thanks. From WTSB's news page: