NEWS in brief
Summerfield prepares to borrow money for first time The Town Council plans to decide March 22 whether to proceed with a $1.8 million loan for construction of the new town hall by CHRIS BURRITT SUMMERFIELD – For the first time in Summerfield’s history, the Town Council is preparing to borrow money. Players from the 2019 Pigskin for Hodgkins smile big after the game.
Saturday, March 26
12 pm gates open • 1 pm kick-off Northwest Guilford High School R.L. Billings Stadium • 5240 Northwest School Road, Greensboro
Admission: minimum $1 donation at the gate “Four years ago, my little sister, Karly, was diagnosed with Hodgkin’s Lymphoma. Thankfully, she won her battle, but Karly’s journey inspired us to find a way to give back to the community and help other families going through the same experience. “Pigskin for Hodgkins is a charity flag football game that features former high school, college, and professional athletes playing alongside other familiar faces to the area. Each team will feature a celebrity coach that fans will be able to take pictures with and get autographs from. “While football is at the center of what we do, Pigskin For Hodgkins is a family-friendly event that also includes games, prizes, raffles, and food. “To date, we have raised over $25,000 for families battling childhood cancer and Hodgkin’s Lymphoma research. We could not have done this without the outpouring of support from our community.”
For more information, you can visit: www.pigskinforhodgkins.org or follow @pigskinforhodgkins on Instagram
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MARCH 17 - 30, 2022
The council instructed finance officer Dee Hall during its March 8 meeting to start preparing paperwork for a 10-year loan of $1.8 million from Pinnacle Financial Partners. The town secured an annual interest rate of 2.25% in an environment where many expenses, including borrowing costs, are rising.
“I don’t think anybody thinks interest rates aren’t going to go up since everything else is going up,” Hall told the council. “While we have that rate locked in, it would be good to get things moving.” The council plans to decide during a budget planning meeting March 22 whether to take on debt for the first time since Summerfield’s incorporation 26 years ago. The loan would help pay for construction of the new town hall.
The Finance Committee recommended the borrowing during its meeting last month. If the council decides to borrow, the state’s Local The Northwest Observer •Government Totally local since 1996 Commission would decide
whether to approve the loan. The commission determines whether municipalities across the state can afford to repay debt. “Summerfield has not had any debt before,” Hall told the council. As of Feb. 28, the town had an unassigned fund balance, or savings, of nearly $5 million, according to the town’s balance sheet. If Summerfield proceeds with the loan, the town would pay an annual principal of $180,000 for 10 years, according to Hall. It would also pay two interest payments of about $20,000, with the interest declining as the principal goes down. The new town hall would serve as collateral for the loan, Hall said. There’s no prepayment penalty. Summerfield would receive a lump-sum payment at the outset of the loan, followed by drawdowns of funds as the town incurs costs for building the town hall. During its April 12 meeting, the council expects to get final cost estimates for the project from architectural firm Creech & Associates and construction manager Samet Corp. If the council decides to build a new town hall, town staff would bid the project, according to a timeline on the town’s website. Last November, the council decided to move ahead with plans for the town hall, despite estimated costs exceeding the original $3.5 million budget by about $272,934. Creech and Samet were authorized to proceed with the design of the building and finalize costs. The council also instructed the Finance Committee to evaluate how to pay for the project – cash, borrowing or a combination of both.
