Local Government Commission Approves Financing Requests for Public Safety Projects Several Towns Get Green Light for Tens of Millions of Dollars
(Raleigh, N.C.) – The Local Government Commission (LGC), chaired by State Treasurer Dale R. Folwell, CPA, voted on Tuesday, Dec. 1, to approve more than $57 million in municipal financing requests that include construction and purchase of police and fire buildings and other municipal facilities.
The LGC is staffed by Department of State Treasurer personnel and must approve any borrowing sought by more than 1,300 units of local government and state government.
“The Local Government Commission serves a vital function by facilitating financing for government units, and vetting requests. Commission members make certain the projects are necessary, the amount being borrowed is adequate and reasonable, and the government unit can afford to repay the debt,” said Treasurer Folwell. “These projects will provide immediate and future benefits to those who teach, protect and otherwise serve in their communities.”
LGC members approved the following items:
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Town of Mooresville (Iredell County), $46.5 million in limited obligation bonds to build a 50,000-square-foot police headquarters building; a 13,800-square-foot fire training facility; a 3,300-square-foot fleet services building; and to refund loans and bonds at lower interest rates to save more than $864,668. No tax increase will be required, and payments will be made from revenues to the General Fund. The LGC determined the financing was necessary to replace the existing police headquarters building, and to provide adequate public safety services throughout the town.
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City of Hickory (Catawba, Burke and Caldwell counties), $7.5 million to construct a fire/rescue training tower for firefighters and recruits. Money also would be used to expand the Ridgeview Branch Library; install a synthetic turf field at Henry Fork River Park; upgrade 19 acres of Rotary-Geitner Park; and improve an access road into a proposed industrial park. No tax increase is anticipated, and LGC staff determined the financing was necessary to provide additional recreational, transportation and educational opportunities for citizens and city staff. The city has bids in hand.
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Town of Spencer (Rowan County), $2.8 million to purchase a 20,000-square-foot building for conversion to a police department, town administration and Town Council meeting rooms. No tax increase is expected, and the town already has bids in hand. LGC staff determined the financing was necessary because the existing building does not meet town needs currently or into the foreseeable future.
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Town of Franklin (Macon County), $400,000 to build a fire substation that will provide services closer to residents of the fire district. No tax increase is expected, and General Fund revenues will provide for the debt payments. The town has bids in hand.
Among other agenda items approved by the LGC were two requests from the Fayetteville Public Works Commission totaling more than $22 million for sewer projects. The work involves installation of sewer lines to protect the environment by replacing septic systems that will eventually fail in annexation areas and to accommodate future growth beyond the previously annexed territory. Future water and sewer revenues are expected to be sufficient to pay the cost of operations and debt service.
In addition to approving local and state government borrowing, the Local Government Commission oversees independent audits, and provides resources, guidance and oversight on topics ranging from annual budgets, internal controls and debt management to pension and other post-employment benefits such as health care.