Rhea County Commissioner Bill HollinBy Tom Davis, Correspondent
DAYTON, Tenn. -- Rhea County commissioners were warned this week that the financial assumptions behind a planned $35 million bond issue to pay for a new high school are based on "perfect-world scenarios that are not going to take place."
Steve Randolph, a certified public accountant with 44 years experience in county, city and school finances, encouraged commissioners to re-examine plans for the bonds. Randolph, also a Dayton City Council member, said he was not speaking as a councilman but as an accountant who has examined the documents and been contacted by concerned county residents.
"I'd urge you to look at concrete information," not what has been described as conservative projections, he said.
Randolph told commissioners during their workshop session Tuesday that he questions the projected 4.3 percent interest rate and said that, based on current conditions, he expects the rate to "exceed 5 percent."
He questioned the projected property tax income growth, the projected sales tax revenue growth and the projected income from Tennessee Valley Authority impact funds. He said the documents provided commissioners "assume at least 20 years of revenue from TVA that is not going to be there. That's more than $5 million revenue that is not included.
"If we can't meet the debt structure and we default, an administrative law judge will set our property tax rate," Randolph said. "We can build the school for $35 million, but we cannot pay for it. I implore you to revisit funding, then decide what to do on the projects."
Commissioners did not respond directly to Randolph's comments but agreed to hold a workshop at Fall Creek Falls State Park on Aug. 26-27 to consider a number of items, including funding for the school and a proposed jail or justice center.
In other matters, commissioners agreed to consider an agreement with the Southeast Tennessee Development District to provide planning support after a state decision to drop that service. Chuck Hammonds, representing the development district, said the service would cost the county $9,250 per year, the same as charged by the state, but that the county would have to pay last year's assessment, which was not paid to the state.
Commissioner Bill Hollin also urged commissioners to consider imposing a $1-per-bag fee for trash left at the county's garbage convenience centers, or a $5-per-ton tipping fee for cities and counties at the landfill, to provide revenue to fund the solid waste collection operation. Commissioners did not act on the recommendation.
Tom Davis is based in Dayton. Email him at tsdavis@volstate.net.