The Vance County Board of Commissioners on Monday night unanimously approved resolutions that would allow the sale of Qualified Zone Academy Bonds for use in school renovations.
Qualified Zone Academy Bonds, or QZABs, are interest-free loans of federal money granted by the state to qualifying counties for the purpose of school renovation. Vance County qualified for $2 million.
During a public hearing, Vance resident Julian Oliver asked how the county proposed to pay back the bond and if taxes would be increased again.
“It’s possible,” County Manager Jerry Ayscue said. He went on to say that the payments would stretch over 16 years and be about $104,000 to $105,000 per year. Payments are paid into an escrow account so that they earn interest and reduce the final payment. Payments, Ayscue acknowledged, would come from the taxpayers of Vance County.
Jerry Tucker, Vance’s finance director, said the QZAB loan should not have any impact on county taxes. The repayment should come from money earmarked from the sales tax. He indicated that Vance County’s repayment obligation would total $1.6 million and that he did not know where a better deal could be found.
Claiborne Woods, the director of maintenance for Vance County Schools, presented to the board an itemized list of schools that would benefit from QZAB money. Needed repairs range from new carpet to the replacement of the metal roof at Northern Vance High School at a cost of $783,751. Other schools that would benefit are Aycock Elementary ($52,638), Henderson Middle ($55,115), New Hope Elementary ($49,422), E.O. Young Elementary ($16,181), Pinkston Street Elementary ($25,485), E.M. Rollins Elementary ($755,737) and Southern Vance High ($261,671).
Norm Shearin, the superintendent of Vance County Schools, told the board: “We’re able to borrow this money and pay back less than we borrow. That’s unusual. Because we qualify, that’s a tremendous opportunity.”