The Habersham County Commission has delayed until December further talks about privatizing the county’s gymnastics program and how to pay for a new animal shelter. During their work session and monthly meeting on Nov. 18, commissioners tabled both matters.
Gymnastics privatization
Finance Manager Tim Sims addressed the commission about the request for proposal process to privatize the Rec. Department’s gymnastics program. He told the commission during the work session that only one company submitted a packet for staff to consider. Sims said that typically when there is only one submittal for an RFP, it is rejected and readvertised. However, since this was a specialized service, staff accepted the proposal and brought it before the commission.
North Georgia Reigns Gymnastics out of Cleveland, GA was the only company that submitted a bid for the gymnastics program. The amount submitted to transfer the program was $25,000. The company would receive the gymnastics equipment and take over the lease of the facility currently in use.
Sims clarified that this proposal does not include the sideline cheer program, only the gymnastics program. The sideline cheer program would revert back to the Rec. Department.
Neva Daniels, owner of the company was present to discuss her intent for continuing the program and the need for the current facility.
Daniels told the commission that she and her daughter started the gymnastics program in Cleveland seven years ago after a search of the region for a facility to operate the program. However, her facility now is “busting at the seams.” “What has been a dream of mine my whole life has turned into quite an amazing gymnastics center. I would like to do that here in Habersham,” she told the commission.
She told the commission that the program in Cleveland can be easily duplicated in Habersham and still keep the prices the same as they are now. Daniels told the commission that she does not want to move the program to Cleveland. “I’m looking to stay here in Habersham with this gym.” She also intends to keep the staff that currently provides the service.
“We just want to make gymnastics affordable in Habersham County and make this easier on everybody that lives here and make this easier on you,” Daniels told the commission.
SEE RELATED: HabCo Comm. will discuss gymnastics privatization and shelter finance options
Shelter financing
The commission discussed the financing options for the construction of the SPLOST-approved animal shelter project. The project cost has been a source of contention for some in the community, with many supporters wanting to see it built now rather than later.
Estimated construction costs have soared over the last four years for the project that was originally budgeted for $1.75 million. Commissioners have admitted that the original amount budgeted for the project was grossly inadequate. Now the commission will consider funding the estimated $7,856,000 project by borrowing the money.
Two options were presented to the commission to fund the animal shelter project. One financing option is where the county could borrow the money as a lease/purchase option. The county did the same financing for the Administration Building. The county would repay the money as a certificate of participation (COPS). This option will cost more due to having a higher interest rate.
According to Sims, the interest rate for the COPS proposal will have a conservative interest rate of 5.15% interest rate. The ten year amortization schedule would see an average annual payment of $893,652.
The other financing option is reactivating an industrial development authority. This authority could give the county the flexibility to fund other projects by issuing bonds. The interest rate for the bonds is lower than the interest rate for certificates of participation.
According to Sims, a conservative interest rate for the bonds was estimated at 5%. However, he told the commission that other counties have recently received an interest rate closer to 4% under this option.
The ten-year amortization schedule would see an average annual payment of $887,050, a savings of more than $66,000 over the ten-year term compared to the COPS option.
Both financing options do not require a voter referendum and can be approved by the county commission.
Both items were also on the commission’s regular meeting agenda, where it was to consider moving forward with privatizing the program and financing the construction of the animal shelter, but they were tabled until the December meeting.
