The Sumter County Board of Education met November 11. Bill Camp, with Raymond James, gave a presentation concerning ESPLOST. Camp told how the School Board borrowed money back in 2018. “The plan was to pay it back over two SPLOST period of time. Well, time has moved on. You got three years left on those bond payments. October 1 of 27, you’ll make a final, principled interest payment, and you’re making all of these payments from the present sales tax, so at the end of the present sales tax, you will be debt-free.”

Camp gave further details. “In your 21 referendum, where you renewed the sales tax, you also asked the voters to approve the ability to borrow money. Those bonds were authorized but not issued, and you still have almost $3.5 million there available to you.”

He also gave details about the expiration of the sales tax. “The main thing is June 30, 2027 is when your present sales tax will cease and so the idea would be to have a renewal of that sales tax before you get there.”

Camp made projections based on past performance. “You’ve averaged about $5.7 million, that’s a collection total for the last twelve checks, last twelve months, just carrying that out five years, no growth, we’re looking at $28.5 million.” He encouraged the Board to plan accordingly. He did  stated that average growth was 7.4% for the last five years, which would exceed the $28.5 million. “If we grow at a higher rate, anything over above our debt service every year we’ve got for other needs.”

He also told how bonds allow the School Board to use money for capital projects earlier than the money is paid out by tax-payers. He told how inflation made this desirable. “Historically speaking, it’s a lot cheaper to build something today than it is five years from now.”

Camp gave further information about borrowing. “When you borrow as a school board, you’re borrowing on what’s called a tax exempt basis. The IRS allows you to borrow at a lower rate. Your investors don’t pay income tax on that interest income.”

He gave further details. “If you pass a referendum in March, you have the ability to borrow your money. . .at any time.”

School Board member Rick Barnes commented on bond interest that the Board would pay. “You lose a million and a half dollars.”

Camp agreed, stating the motivation is to build faster to beat rising prices. The Board also discussed a 10-year verses a 5-year period for bonds. Barnes gave his opinion on making a decision, stating they should; “figure out what you’ve got to spend that money on, that ESPLOST will support.”