COLUMBUS – The Polk County Board of Commissioners set a public hearing for Oct. 3 to hear feedback over financing up to $13.5 million for a new law enforcement center complex as well as approved a new budget ordinance with the not to exceed figure.

Commissioners met on Sept. 19 and heard from Amy Vitner, managing director of First Tryon Advisors, out of Charlotte, who detailed a financing bid from Capital One, at 2.58 percent.

Vitner said the county has agreed to increase its tax rate by two cents this fiscal year and another two cents next fiscal year in order to pay back the debt.

County manager Marche Pittman said the N.C. Local Government Commission (LGC) would like to see the county earmark any surplus from the tax increase in a capital building maintenance line item to be used for all buildings, including the new jail.

Commissioner chair Michael Gage asked if there can be an end date to the tax increase once the loan is paid.

County attorney Jana Berg said the county is telling the bank it is increasing the tax rate by four cents until the end of the loan, then the money can be earmarked elsewhere.

Gage asked if the current board can put a note for future boards for the tax increases to go away.

Berg said there is a 15-year commitment to the bank.

Commissioner Ted Owens said if the county got wealthy and no longer needed the four-cent tax increase a future board can approve a budget without the four cents.

Vitner told commissioners the Capital One bid includes no additional fees as well as the county being able to pay off the loan early with no penalties after eight years.

Polk County expects to open construction bids this week. The county will not know exactly what its budget for the project needs to be until the construction bids are received. Commissioners said they are hoping after the construction bids are in, the budget ordinance will be able to be decreased and the county not have to borrow as much as $13.5 million.

Gage asked, worst case scenario, if the bids come in over the approved amount, will the LGC allow the county to take money out of its fund balance to pay the remainder.

Pittman said it will depend on what the amount over is. Pittman said the county’s fund balance is healthy, so it would have to be over by a large number, and the county would need the LGC’s blessing to spend more money.

Polk County’s last audit, for fiscal year 2016 ending on June 30, showed a fund balance of 32 percent. Vitner said from a credit standpoint, she likes to see local governments have in the 20-25 percent range and anything over 30 percent is considered extremely healthy.

Commissioners agreed earlier this year to purchase two parcels of land just outside Columbus to construct a new, 60-bed jail and sheriff’s office. The total acreage is almost 22 acres, which the county is purchasing for $2,075,000.

The closing of the large parcel, which is off Hwy. 108 adjacent to Milliken, has not yet closed. The county is purchasing it for $1,950,000 with clearing and land preparation already begun. Berg said there have been some setbacks due to weather and the closing date on the property is contingent on the county engineer approving of the improvements. Berg said the expected closing date on the property is on or about Oct. 31.

Improvements to the property include roads, curb and guttering and pads for both the jail and sheriff’s office, which will be located near the rear of the property and a future courthouse, which will, when a future board decides to construct a new courthouse, be built near the front of the property from Hwy. 108.

Commissioners set the public hearing for the financing of the law enforcement complex for its next meeting, which is next Monday, Oct. 3 at 7 p.m. Commissioners meet in the R. Jay Foster Hall of Justice, located on the second floor of the Womack building in Columbus.