Cabarrus County Seeks $186 Million in Bonds for Major Projects
Cabarrus County officials are seeking approval from the Local Government Commission (LGC) for $186 million in limited obligation bonds to fund various general government projects. This significant request has been a topic of extensive discussion at the commission's July meeting, with the final decision set for the upcoming LGC meeting on Tuesday, Aug. 6.
The bonds, if approved, will be used to pay off previously issued bond anticipation notes at a variable rate, and fund additional project costs. Bond anticipation notes are essentially short-term securities issued to finance upcoming projects in advance of a larger bond issue in the future.
Understanding the Local Government Commission
The LGC is a pivotal body chaired by State Treasurer Dale R. Folwell, CPA, and staffed by the Department of State Treasurer (DST). It has a statutory duty to approve the majority of debt issued by local government units and public authorities across the state. The commission plays a critical role in ensuring that local governments borrow reasonable amounts for their projects and can afford to repay their debts. This includes examining the adequacy and reasonableness of the borrowed amount, confirming the governmental unit's financial ability to repay the debt, and monitoring the financial well-being of over 1,100 local government units across North Carolina.
A Comprehensive Agenda for the August Meeting
The upcoming meeting promises a full agenda with numerous financing requests from various local governments. In addition to Cabarrus County's request, the LGC will be considering resolutions to approve the return of financial control to the town of Eureka in Wayne County and Cliffside Sanitary District in Rutherford County. These decisions follow the General Assembly's temporary suspension of Eureka's town charter in June 2019, with a planned expiration date of June 2024. The LGC, having addressed the deficiencies that led to the suspension, is now returning financial control to the town. Similarly, the LGC, which assumed financial control of Cliffside Sanitary District in September 2019, will be returning control following successful correction of financial issues. Last month, the commission returned financial control to Spring Lake in Cumberland County.
Other Significant Financing Requests
The city of Charlotte in Mecklenburg County is seeking LGC approval for $205 million in revenue bonds to finance stormwater projects. The funds will be used to prepay prior stormwater revenue bond anticipation notes. Meanwhile, Johnston County is requesting approval for $75 million in revenue bonds to improve water and sewer systems, which include the acquisition of water supply from the town of Wilson, upgrades to transmission pipes for Wilson and Johnston County, and improvements to a wastewater treatment facility.
Pender County is requesting $68 million in limited obligation bonds to construct a new 10,000-square-foot law enforcement center. This facility will house a detention center, a sheriff's office, a 911 operations center, and an evidence storage facility. Holly Springs in Wake County is seeking approval for $42 million in limited obligation bonds to build and equip an Operations Center on a 30-acre plot. This ambitious project includes the construction of a new administration building, operations building, a citizen's convenience center, and storage facilities for vehicles and equipment.
New Hanover County is requesting $37.5 million in limited obligation bonds to fund a variety of projects. These include the construction of a nearly 20,000-square-foot library, two fire stations, an ammunition warehouse and office/classroom building at the Sheriff's Department firing range, and roof replacement at the county Senior Center. If approved, Asheville in Buncombe County will issue $30 million in revenue bonds to finance water system improvements, including extensions, additions, capital improvements, and the replacement of capital assets.
Person County is requesting approval for $22 million in limited obligation bonds. The proceeds will be used to acquire a portion of a building currently leased by the Health Department and Social Services Department, purchase a building for use by Piedmont Community College, repair the roof at South Elementary School, and make improvements to the county recycling center. These improvements are expected to reduce lease expenses, provide additional space for the college, and enhance the safety of the elementary school.
Stokes County is seeking LGC approval for an $11 million installment purchase to improve and expand the County Courthouse. The existing courthouse, operating at full capacity, requires expansion to meet the county's needs. With an installment purchase, costs are paid over time instead of upfront.
The town of Mebane, spanning Alamance and Orange counties, is seeking approval for a $7.6 million installment purchase to replace the spillway in Lake Michael Park. This project is vital for ensuring safety during heavy rainfall. Richmond County is seeking $7.5 million in installment purchase funds for improvements and expansion of its county building, which houses offices and the Board of Commissioners chambers.
Additional Financing Requests
Beyond these major requests, the LGC will consider financing requests from several other local governments:
- Belmont (Gaston County): $2.6 million for vehicle purchases.
- Morrisville (Wake and Durham counties): $1.7 million for street and sidewalk repairs.
- Wallace (Duplin and Pender counties): $1.8 million to rehabilitate Maple Creek Pump Station.
Housing Authority Financing Requests
The Wake County Housing Authority will present multiple financing requests totaling over $40 million for various conduit revenue bond requests. These bonds are used to loan money to third parties to acquire, build, and equip rental housing developments. The developments included in this request are:
- Avonlea: $5.2 million
- Highland Village: $4 million
- Jeffries Ridge: $3.5 million
- Madison Glen: $14.9 million
- Ripley Station: $4.8 million
- Sedgebrook: $3.7 million
- Tryon Grove: $5.5 million
The Durham Housing Authority is requesting approval for a $5.1 million conduit revenue bond to be loaned to Village Capital Corporation, an Indiana corporation, for the construction of a 168-unit multifamily rental housing development called Trails at Twin Lakes Apartment Homes on Ross Road.
Lead Service Line Inventories
Finally, LGC members will consider financing for multiple lead service line inventories in various counties, including Belmont (Gaston County), Burnsville (Yancey County), Eden (Rockingham County), Gates County, Hobgood (Halifax County), Kinston (Lenoir County), Laurinburg (Scotland County), Newton (Catawba County), Ranlo (Gaston County), Richmond County, Troy (Montgomery County), and Weldon (Halifax County).
The Local Government Commission: A Vital Role in North Carolina's Development
The Local Government Commission plays a crucial role in the development of North Carolina's communities. By carefully reviewing and approving financing requests, the commission ensures that local governments have the resources they need to fund important projects while maintaining fiscal responsibility. The August meeting is likely to be a significant one, with numerous crucial requests that will impact the future of communities across the state.
