LAURINBURG — Community support for constructing a new City Hall could be a factor in the state’s decision to allow Laurinburg to build a $7.5 million government complex.

The next step is for the city to submit plans to the Local Government Commission that will determine if Laurinburg can afford to take on the project. The commission does this by looking at two categories, fiscal management and debt management with a total of 16 factors.

One of the factors to be considered is public support.

The Laurinburg City Council voted unanimously last month to approve the construction of the new building after months of back-and-forth with some residents critical of construction. Mayor Matthew Block has also strenuously opposed the idea.

“Community support for the project is important, especially for non-voted debt. Lack of community support may be evidenced by comments at meetings of the governing body or public hearings, correspondence, newspaper articles, etc.,” the commission guidelines state.

Numerous residents have voiced objections to the project at council meetings and a special public input session was held in November where most speakers expressed opposition to a new facility.

But some on council said the project also has supporters in the community — even if they are not as vocal as critics.

“People that have spoke to me in the community are saying they support council’s decision” said council member Dee Hammond. “We’ve heard the people who have come to the meetings and have tried to be very diligent in looking at the design and cutting out some of the fluff that wasn’t needed.”

City leaders said the new City Hall is needed because that the current facilities are too small, deficient and outdated. The current police station was built in 1958 and was added to in the 1970’s to accommodate more staff. The two-story, 12,500-square-foot building also houses customer service, the finance department and council chambers. The adjacent W. Charles Barrett Building is 3,000-square feet and houses the administration, human resources and the planning departments. The former manse was purchased from the Presbyterian Church. The new building would house all city departments.

According to council members, experts have said that it would be cheaper to build new than renovate the old ones.

Other factors

According to the commission, any threat or existence of litigation related to the project or the financing must also be satisfactorily resolved.

“Litigation could affect either the marketability of the debt or the borrower’s ability to repay the debt,” the commission said.

The LGC also looks for the project to have a reasonable debt burden. A heavy debt burden may be evidenced by a ratio of general fund debt service to general fund expenditures exceeding 15 percent.

Funding for the new City Hall will be split up with 66 percent from the general fund and the remaining 34 percent from the water/sewer and electric funds.

Block and other opponents have repeatedly argued that the city cannot afford the proposed 21,675-square-feet facility that would come with an estimated price tag of $7.5 million that would only include construction costs.

Block said the city would have to raise taxes or utility rates to pay for the project, but other council members claim that is not true and the city is in good shape to undertake the project.

“There is a best time to do it financially and now with our debt almost gone, it’s a good time to do it,” Hammond said.

Other LGC requirements include:

— The project being “ready” meaning the city needs to present construction bids, any required major permits and a Phase I environmental study before any approval will be given by the Local Government Commission.

— The request to borrow must be for capital expenditures, not operating expenses.

— A budget for the project must be adopted prior to the beginning of the fiscal year.

— A repayment plan presented must be complete and consistent regarding the maturity of debt, life of assets financed, terms of related agreements, etc. In addition, the repayment plan must be consistent with the financial projections provided by the issuer.

City Manager Charles Nichols said staff spoke with LGC officials earlier this year, but intents on holding additional meetings now that council has approved moving to the second phase of the five-phase project.

Amber Hatten can be reached at 910-506-3170.

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By Amber Hatten

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