(Raleigh, N.C.) – The Local Government Commission (LGC) has approved a request by rapidly-growing Union County to borrow up to $331 million in bonds to build new water and sewer system infrastructure and upgrade existing facilities.
The LGC, chaired by State Treasurer Dale R. Folwell, CPA, and staffed by Department of State Treasurer personnel, convened remotely at 2:30 p.m. Tuesday, March 2, to consider numerous requests from local government units across the state to borrow money or refinance existing debt at lower interest rates.
Union County expects to sell its bonds on March 10 at a 30-year fixed interest rate not to exceed 3.2%.
“They are completely redoing a good part of the utility system due to the amount of growth they have in the western part of the county,” Sharon Edmundson, LGC secretary and director of the State and Local Government Finance Division, said during discussion on the application.
“We are pleased to assist Union County move forward with much needed projects to provide residents with water and sewer services that are safe, sanitary and protective of the environment and public health. Now the hard work begins of getting the job done on time and under budget,” Treasurer Folwell said.
“The Local Government Commission has fulfilled this type of vital financial oversight of local government borrowing for nearly 100 years, and its unique role is the envy of most states that don’t have a similar agency,” Treasurer Folwell said.
According to the U.S. Census Bureau, Union County’s population rose 19% from April 2010 to July 2019, from 201,000 to nearly 240,000. It had the seventh-fastest growth rate among all North Carolina counties during that time period, and sixth-largest numeric increase, according to the Carolina Population Center.
Union County plans to use the bonds to build a Yadkin River intake facility and pump station, with a related water treatment plant and transmission lines. Sewer-related construction and improvements are included, as are renovations to administrative buildings.
Other items on Tuesday’s agenda that were approved include:
- Pitt County, $34 million in limited obligation bonds to renovate AG Cox Middle School, to reimburse a land purchase and acquire a solid waste compactor. In addition, existing debt will be refunded at a lower interest rate at a savings of nearly $1.2 million. No tax increase is required.
- Macon County, $22.5 million in limited obligation bonds to renovate Macon Middle School and refund a prior N.C. Department of Environmental Quality loan at a lower interest rate at a savings of $862,000. No tax increase is required.
- Orange Water and Sewer Authority (Orange County), revenue bonds not to exceed $21 million for a variety of replacement and rehabilitation projects, including work at the Jones Ferry Road Water Treatment Plant and the Mason Farm Wastewater Treatment Plant.
- City of Charlotte Housing Authority/INLIVIAN (Mecklenburg County), revenue bonds not to exceed $19.8 million to provide a loan to Arrowhood Housing to acquire, build and equip 168 one-, two- and three-bedroom low-income apartment units. The project is deemed necessary to provide an adequate supply of affordable housing.
- City of Charlotte Housing Authority/INLIVIAN (Mecklenburg County), revenue bonds not to exceed $17.5 million to provide a loan to Dillehay Courts to acquire, build and equip 144 one-, two- and three-bedroom low-income apartment units. The project is deemed necessary to provide an adequate supply of affordable housing.
- Forsyth County, $14.8 million in general obligation bonds for school maintenance and renovation projects, capital maintenance and modernization projects including the Law Enforcement Center and site development of a new park at Belews Lake.
- City of Concord (Cabarrus County), $6.2 million in financing to build a 17,900-square-foot fire station.
- Haywood County, $2 million in financing to renovate a school building to house Haywood County Schools Administration.
- Town of Gibsonville (Alamance and Guilford counties), $1.4 million in financing for water and sewer line extensions.
- City of Lexington (Davidson County), $1 million in financing to renovate the civic center and improve Finch Park playground.
Revolving loan applications were approved for:
- Contentnea Metropolitan Sewerage District in Grifton (Pitt and Lenoir counties), $6.8 million to replace one pump station and rehabilitate another to protect critical infrastructure during storm and flood events.
- City of Claremont (Catawba County), $4.5 million to meet wastewater treatment needs.
- Town of Whiteville (Columbus County), $2.9 million to replace 75-year-old failing sewer infrastructure.
- Town of North Wilkesboro (Wilkes County), $1.8 million to improve water pressure to customers and industrial properties considering expansion.
Requests to refund existing debt at lower interest rates were approved for Wake County, $218 million ($9.35 million savings); Vidant Health and Vidant Medical Center (Pitt County), $125 million ($9.33 million in savings); City of Jacksonville (Onslow County), $34 million ($1.78 million in savings); Forsyth County, $23 million ($224,640 in savings); City of Burlington (Alamance County), $14.2 million ($2.435 million in savings); City of Wilmington (New Hanover County), $4.7 million ($854,046 in savings).
The Local Government Commission monitors more than 1,300 units of local government, and must approve most borrowing by those entities. It oversees independent audits, and provides resources, guidance and oversight on topics ranging from annual budgets, internal controls and debt management to financial guidance related to pension and other post-employment benefits funds. For more information click here.