In a special called meeting on Tuesday evening, the Habersham County Commission made key decisions regarding the county’s animal shelter project and the future of the gymnastics program. After months of discussion and public input, commissioners voted to move forward with both the financing for a new animal shelter and the privatization of the county’s gymnastics program.
Shelter financing
The commission approved a financing plan for the county’s new animal shelter, with a focus on the Certificate of Participation (COPS) financing option. The decision came after extensive discussions over alternative options, including reactivating the Industrial Development Authority (IDA).
Finance Manager Tim Sims presented the commission with three potential financing schedules for the $6.85 million project: 10, 15, and 20-year terms. Sims recommended the COPS option based on consensus of the commission over the IDA, a now-dormant entity that would require legislative action to reactivate.
Sims explained the different annual payments for each term. The 10-year payment schedule would cost approximately $890,000 annually, while the 15-year term would reduce that amount to just over $660,000. The 20-year term would lower the annual payment further to about $550,000. Sims noted that the interest rate of 5.15% could decrease once the financing went to bid, saving the county money.
Commissioners had mixed opinions on the issue. Commissioner Bruce Harkness expressed concerns about the long-term cost, pointing out that although the 15- and 20-year terms offered lower annual payments, taxpayers would end up paying significantly more over the life of the loan.
Commissioner Bruce Palmer proposed reconsidering the IDA option to secure a lower interest rate, but County Attorney Donnie Hunt explained the challenges of reactivating the authority. After further discussion, the commission decided to proceed with the COPS financing option with an early payoff provision, which passed by a 3-2 vote. Commissioners Jimmy Tench and Palmer voted against the measure.
Gymnastics privatization
The second major decision of the night was the privatization of the county’s gymnastics program, a move prompted by feedback from citizens during the budget process. After an open request for proposals (RFP) that closed in late October, only one vendor submitted a bid to take over the program.
Sims presented the details of the proposal, which included a $25,000 offer to purchase all gymnastics equipment. The vendor would look to invest an additional $35,000 to upgrade both the facility and equipment. The vendor would also assume responsibility for running the programs, with the goal of a smooth transition that would not disrupt the upcoming season.
The proposal also includes subleasing the gymnastics facility to the vendor for two years to keep costs of the program low. This strategy aims to keep program costs manageable while ensuring the vendor has the necessary resources to run the program effectively. Sims mentioned that the equipment was appraised at $197,000 by a gymnastics specialist.
Sims explained to the commission that at this point staff needed further guidance on keeping the program in-house or privatize it. If the commission moved forward with privatizing the program, there would be several things that needed to be negotiated with the vendor for a final contract. He stated that the price of the equipment, program fee caps, a timeline to take over the program, and subleasing the facility would be part of the contract.
The commission discussed whether to continue operating the program in-house or privatize it. After further deliberations, the commission voted to move forward with privatization, passing the measure with a 3-2 vote. Commissioners Tench and Palmer again dissented.
Next steps
Both decisions are expected to have significant impacts on the county’s finances and community programs. The animal shelter financing will move forward with the COPS option, while negotiations with the gymnastics vendor will continue to finalize the terms of the contract.
The financing and gymnastics privatization contracts will come back to the commission in the coming months for final approval.
