Board comes up with payment plan for bonds

by Quinton Sheppard - Posted on Sep 04, 2013 - 02:08 PM

After another discussion Tuesday night on whether to issue $17 million in bonds for construction on the new Page Middle School and school HVAC and roof repairs, the Gloucester County Board of Supervisors decided to stay on track with its planned borrowing.

Supervisors also voted 6-1 during the board’s meeting in the colonial courthouse on a pay structure, which will include a 3.5-cent increase on the county’s real estate tax rate in fiscal year 2015.

Last month, a majority of supervisors agreed to the issuance and sale of $17 million worth of school bonds, with $12 million being designated for the new Page Middle School project and an additional $5 million for school roofing and HVAC needs.

The board of supervisors voted Tuesday night on one of three options presented by the county’s financial advisor, Ted Cole of Davenport & Company, which will essentially carry the debt on the $12 million for 20 years and the debt on the $5 million for 15 years.

With this option, Cole said the payback on the $5 million for HVAC and roof repairs would be about $700,000 less than amortization over 20 years.