The North Carolina Local Government Commission (LGC) has approved more than $1 billion in borrowing for municipalities.
The commission, which oversees local government finances, approved the financing for more than two dozen North Carolina cities and counties.
Borrowing money through obligation bonds allows the government to spread the costs across multiple years instead of tapping into cash flow or current revenue to cover a project’s expenses. It reduces the burden on taxpayers.
Most of the financing, which was approved last week, was for Charlotte and Raleigh.
Charlotte received the green light to obtain $250 million in bond anticipation notes to pay for capital improvement projects on its water and sewer systems. The North Carolina Department of State Treasurer said the city will now take advantage of lower interest rates by refunding $200 million previously issued for the city’s transit system. It will result in nearly $9.6 million in savings for taxpayers.
Charlotte’s Housing Authority also was approved to seek $9 million in bonds as part of a $15.9 million package to build 80 housing units.
The LGC approved Raleigh’s request to seek $200 million in bonds to improve water and sewer systems. The Raleigh Housing Authority also gained approval for $18 million to loan to Primavera Seniors to build 164 one- and two-bedroom apartments for low-income residents in two residential buildings.
Also notable, Forsyth County received approval for $160 million in limited obligation bonds to construct a new county courthouse.
Forsyth County officials broke ground on the 250,000-square-foot courthouse in February. The new facility is about 50% larger than the existing one. It is scheduled to be completed around spring 2023. Officials said the project was 16 years in the making and was delayed because of funding and location scouting.
“This project is one that’s been in the works for quite some time, and I am thrilled that it is underway,” Forsyth County Commissioner Chair Dave Plyler said during the groundbreaking. “… It will become a symbol of the county’s promising future.”
The Forsyth bond also will pay for a new children’s museum to renovate and expand Smith Reynolds Airport facilities. According to the state treasurer’s office, the county’s existing bonds will be refunded, saving taxpayers $2.8 million.
Moore County taxpayers could save $1.1 million after the approval of the county’s $71 million in limited obligation bonds. The bonds will be used for multistory courthouse in Carthage and to renovate an existing courthouse. The county’s prior loans will be refunded as well.
Hoke County will see a savings of $4.2 million from a financing refund. LGC approved the county’s request for $50 million in limited obligation bonds to build the 53,000-square-foot aquatic and recreation center, two basketball courts, ball fields and Parks and Recreation Department office space in East Hoke.
The LGC also approved:
• Orange County, $28 million; savings of about $374,267;
• Gastonia (Gaston County), $14 million;
• Hickory (Catawba County), $10.6 million;
• Fayetteville Public Works (Cumberland County), $10 million;
• Halifax County, $5.9 million;
• Johnston County, $4.5 million;
• Sanford (Lee County), $4 million;
• Sampson County, $3.1 million;
• East Moore Water District (Moore County), $3.1 million;
• Beaufort County, $2.6 million;
• Harrisburg (Cabarrus County), $2.1 million;
• Granville County, $1.8 million;
• Rolesville (Wake County), $1.6 million;
• Winterville (Pitt County), $1.4 million;
• Sharpsburg:(Edgecombe, Nash and Wilson counties), $951,234;
• Brevard (Transylvania County), $271,129 and $714,512;
• Wadesboro (Anson County), $706,000;
• Newton (Catawba County), $514,821;
• Fountain (Pitt County), $496,000.
This article was originally posted on Commission approves $1B in financing for North Carolina municipalities