Airport upgrades, Southwestern Community College expansions and more are part of a proposed $180 million spending plan over the next five years for Macon County.
“This is a once in a generation budget, fiscal year 2025, I think you can look at it that way,” County Manager Derek Roland said during his presentation on Feb. 8 during the Macon County Board of Commissioners budget kickoff meeting. “This budget will provide the vehicle for some of the most significant capital expenditures in the history of this county.”
The detailed summary for the five-year capital improvement plan, going through the fiscal year 2028-29, totals $180,709,610. Almost half, $88,164,698, would come from grants or other outside funding, including the $62 million recently awarded for Franklin High School construction. The remaining $92,544,912 would come from spending a good chunk of the county’s fund balance and taking on debt, mainly for the Franklin High School and Highlands School projects.
Roland said Davenport and Associates’ Mitch Brigulio is telling the county, “. . .look, you have the ability Macon County, under conservative revenue projections, because of your financial position, because of the interest rates you’re gonna be able to get from that financial position, you’re able, over the next five years, to complete $180 million in capital projects $146 of which will come in [fiscal year 2024-25]. ... Never fall below $7 million in your capital reserve fund…and never fall below $25 million in your fund balance, which still puts us at a level that far surpasses our peers, and last but not least, never have to raise your taxes from what is now the lowest tax rate in the state of North Carolina.”
Roland said fiscal decisions in past years set up this possibility, which he said at times was not popular. Roland said those capital projects are ultimately up to the commissioners, but the spending plan meets many needs talked about in recent years.
The lion’s share of that $180 million would be the estimated $127 million for Franklin High School plus $5.49 million for the Highlands School project, which both moved forward in separate votes. (See related story in today’s paper.)
Airport, pickleball courts, Senior Center, SCC
Besides the FHS and Highlands School projects, several other capital needs are in the five-year plan, including some beyond the next five years.
The Macon County Airport could get a facelift, with $1,822,600 earmarked for hangar development in 2024-25. Outside funding would cover all but $182,260 of that cost. Beginning in 2025-26 and continuing for the next four years, the plan is to install runway extensions for safety areas, installation of runway end identifier lights, and a 1,000-foot extension. The total cost for all five years would be $24,991,679, of which $22,492,511 (89.9%) would be covered by outside funding. The county would pay $2,499,168, with the largest single allocation of $954,663 in 2026-27.
Roland stressed said those priorities are dependent on receiving grant funding.
Two Southwestern Community College projects potentially costing the county $1,868,990, could be completely paid for in 2024-25. One is the Groves Science Room expansion. The total cost would be $4,368,990 for both projects, with the county on the hook for $1,868,990.
The plan lists a public safety training indoor firing range as a potential debt-funded project beyond the next five years.
Phase 1A of the Recreation Master Plan - construction of new tennis and pickleball courts and bathrooms at the Macon County Recreation Park - would cost $1,766,275 in 2024-25, with no grant funding factored in.
Several maintenance projects costing $900,000 in 2024-25 are part of the plan. These include a roof for the Macon County Detention Center ($200,000), an HVAC package ($150,000) and a long-arm mower ($150,000) for building and grounds, a new roof at the Macon County Public Library ($250,000) and a new fire panel at the courthouse ($150,000).
Vehicles will be a focus over the next 10 years of the capital improvement plan, with ambulance replacement at $300,000 and other vehicles at $600,000 annually over the next decade, equaling $9 million total. For information technology, the plan designated $1,330,430 in 2024-25, with more than half going to a once-every-five-years data storage payment.
The Crawford Senior Center could get a future debt-funded renovation to the tune of $25 million. The proposed capital improvement plan has it slated for 2030, but Roland said that could be moved forward if it becomes a priority.
County’s financial position “enviable”
The unveiling of the capital improvement plan came during Brigulio’s financial overview. Brigulio spoke about Macon County’s credit rating of AA2/AA, which he said is very good and allows access to borrow money at attractive interest rates.
During the discussion, Brigulio said if the commissioners adopt a minimum fund balance budget policy, it possibly could raise the county’s credit rating. In response, Commissioner Josh Young asked for a resolution to do as such in March.
The current debt for Macon County is $21.7 million, which Brigulio said is low for a county this size. However, much of that will go down in the next five years, with the county’s annual debt service payment scheduled to decrease from $3.5 million to $1.5 million by 2029.
Brigulio said Macon County has set itself up to fund capital projects. “This is an enviable position to be in; other counties would love to be here,” he said.