Orange County’s plan to use $378 million in bonds for school improvements and expansions at outdated schools took a leap forward on Tuesday, June 3. The Local Government Commission (LGC) approved the financing applications, with the bulk of the proceeds to be used in the Orange County Schools and Chapel Hill-Carrboro City Schools districts.
State Treasurer Brad Briner chairs the LGC. The commission is staffed by the Department of State Treasurer (DST) and has a statutory duty to approve most debt issued by units of local government and public authorities in the state. The commission examines whether the amount of money units borrow is adequate and reasonable for proposed projects and confirms the governmental units can reasonably afford to repay the debt. It also monitors the financial well-being of more than 1,100 local government units.
Just over 67% of Orange County voters approved a referendum for $300 million in general obligation bonds in the 2024 general election. Orange County Schools is expected to receive $125 million of the proceeds. It is considering options that include replacing Orange Middle School (the former C.W. Stanford Middle School), Central Elementary School, or building a new elementary school near Gravelly Hill Middle School. Chapel Hill-Carrboro City Schools would be allocated $175 million and proposes replacing Carrboro, Estes Hills and Frank Porter Graham Bilingue elementary schools.
The LGC also approved $78 million in limited obligation bonds requested by Orange County that do not require voter approval. Proceeds could be used for maintenance and equipment projects in the county and city schools, as well as at the county-owned Sportsplex. Vehicles for solid waste use and schools also could be purchased.
High Point (Guilford County) received LGC approval for $40 million in revenue bonds. Proceeds could be used for water and sewer system extensions, additions and capital improvements including installation of new equipment.
The LGC gave a green light to Asheville (Buncombe County) to issue $35 million in limited obligation bonds to reimburse itself for baseball field improvements. McCormick Field, home to the minor league Asheville Tourists, would meet Major League Baseball requirements after the work.
New Hanover County’s request for $22 million in limited obligation bonds for multiple projects was approved. Projects are expected to include multi-purpose fields, restrooms, a track and parking lot at Northern Regional Park; construction of Smith Creek Park with a trail, nature play and environmental education elements, a shelter and restroom; and building a pier and kayak launch for Trail End’s Pier. Various community college projects and purchase of equipment including fire engine and fire rescue equipment are included in the list of projects.
LGC members voted favorably on a $19 million request in conduit revenue bonds from the Raleigh Housing Authority (Wake County). That method of financing allows the authority to loan the money to Hoke Street Apartments, which plans to help pay for costs to build Burrell Lofts on Garner Road. The affordable housing will include 120 multifamily residential rental units.
Union County got a thumbs up from LGC members for $13 million in two-thirds general obligation bonds for public facilities projects. Those include needed court and office space at the county’s Judicial Center and Government Center. A two-thirds bond allows a local government to issue a general obligation bond without voter approval. The bond value can be up to two-thirds of the amount by which the local government’s outstanding general obligation debt was reduced in the preceding year.
Catawba County received the go-ahead for a $9.4 million financing agreement to consolidate and expand Catawba Valley Medical Center’s outpatient medical services. The agreement would facilitate a five-year lease of 31,291 square feet of medical office space.
Other applications on the agenda that LGC members approved were submitted by:
- The town of Hillsborough (Orange County), $3.6 million for an installment purchase to renovate and construct buildings for fleet maintenance and public works, renovate office space and provide parking and storage. An installment purchase allows for periodic payments instead of paying all purchase costs up front.
- Statesville (Iredell County), $3.2 million for an installment purchase to replace the city’s main water line, totaling 4.75 miles.
- Holly Ridge (Onslow County), $2 million financing agreement to recondition and repair all roads to meet Department of Transportation standards.
- Yadkin County Schools, about $2 million in financing to install lighting and HVAC energy conservation measures at school facilities.
- Matthews (Mecklenburg County), $1.75 million for an installment purchase of two parcels of land on South Trade Street for future park development.
- Vance County, $1.5 million to enter into a lease agreement for 31 vehicles to replace an aging fleet, thus providing reliable, safe and fuel-efficient vehicles.
- Bryson City (Swain County), $991,340 in financing to purchase and install new water meters to replace equipment at the end of its life cycle.
- Newton (Catawba County), an installment purchase of $787,350 for tractors and mowing equipment, elevator renovation and police communication equipment.