On March 12, 2023, Putnam County voters will be asked to approve the sale of general obligation bonds totaling a maximum of $22 million.
The purpose will be the resurfacing of dozens of small roads and subdivision streets in the unincorporated part of the county. The county Board of Commissioners approved the call for a referendum at its mid-month meeting last week.
The list of projects will be the same as was approved nearly two years ago in the second T-SPLOST referendum, which was based on sales taxes. “Re-approving” the same project list is aimed at using the slowly accumulating T-SPLOST monies to pay the estimated $24 million in principal and interest from the general obligation (G.O.) bonds in four years.
While the original estimates put together in 2021 had T-SPLOST taxes paying back $17 million in four years, the past two years of inflation have put the sales tax collections on track to cover virtually the whole amount, according to Putnam County Manager Paul Van Haute.
“We’re in good shape,” he said.
The advantages of getting the whole $22 million upfront via G.O. bonds are touted as, one, cheaper costs of asphalt from the temporary E.R. Snell asphalt plant set up to pave U.S. 441 north of Eatonton, and two, the efficiencies to paving companies from having larger groupings of small projects rather than a piecemeal approach spread out over four years.
However, the plan may have a sticky political, if not also legal, problem. General obligation bonds tend to draw lower interest rates than revenue bonds because they are backed by the “full faith and credit” of the county government rather than sometimes iffy variables of the marketplace.
In his first meeting since his return to the commission, Steve Hersey asked if the Eatonton city government was in line to get any of the T-SPLOST funds. He got no answer. Hersey was on the short end of at least 3-1 votes in the three-hour meeting, not counting his “no” vote on adjournment that drew considerable laughter.
In other matters, the commission:
• Heard a pitch from Henry Craig, a Baldwin County commissioner and president of the state’s association of counties (Association of County Commissions of Georgia/ACCG), about pushing the state government to revamp its support of mental health treatment.
“I’m not advocating warehousing (people), but what we have is not working,” Craig said. “The largest mental institution in Georgia is the Fulton County Jail,” he said, adding that sheriffs and counties are often ill-equipped to deal with mentally disturbed prisoners over a long period.
• Approved 3-1, the rezoning of a five-acre tract at the intersection of Old Phoenix Road and Ward’s Chapel Road for commercial use, much to the vocal displeasure of several area residents.
• Hired the Atlanta-based law firm of Holland & Knight to represent the county in dealings with the Office of Planning and Budget over unexpended American Rescue Plan Act (ARPA) funds.
• Hired Richmond, Virginia-based Davenport & Co. as the fiduciary to find the best place to sell its G.O. bonds.
• Approved a three-year continuation of the trash and recycling contract with Waste Management.