Wake County will be able to seek financing to build a new Morrisville High School now that the Local Government Commission (LGC) approved its application for nearly $704 million in limited obligation bond anticipation notes. The money also will help pay for other projects.
That was the largest financing request on the agenda for the LGC’s monthly meeting on Tuesday, Aug. 5.
Wake County does not anticipate a tax increase due to the new debt. The projects are already in progress in bidding and engineering estimate phases. Limited obligation bond anticipation notes (BANs) are short-term financing instruments used to launch a project until long-term debt is issued. Unlike a general obligation bond, BANs do not require voter approval.
Proceeds from the financing also will be used to rebuild Brentwood Elementary School and perform major renovations at North Garner Middle School. Accommodating an increase in student capacity in the growing school district is a major goal.
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.
The N.C. Capital Facilities Finance Agency (NCCFFA) was granted approval of $37 million in conduit revenue bonds. This type of financing allows the agency to loan the money to a third party. In this case Pine Lake Preparatory, a tuition-free, K-12 charter school in Mooresville (Iredell County) serving 1,890 students, will obtain the funds to refinance outstanding bonds at lower interest rates. That is projected to save about $690,000 in annual debt service. In addition, proceeds will pay for construction of an administrative building, field house and other capital projects.
The LGC signed off on another application from NCCFFA to issue $5 million in conduit revenue bonds to loan to the Montessori School of Raleigh. The money will be used to refund previous bonds. The private, nonprofit Montessori School has campuses in Raleigh and Durham.
The Raleigh Housing Authority (Wake County) successfully requested that the LGC approve $32.5 million in conduit revenue bonds to loan to Roers Raleigh Apartments, a Minnesota limited liability company. Proceeds will finance a portion of the costs to acquire, build and equip a low- to moderate-income multifamily housing development. The 181-unit development to be known as The Averie will be located on Old Poole Road.
The LGC approved a request from the Wilmington Housing Authority (New Hanover County) to issue $28 million in revenue bonds to be loaned to BRAD Avenue Flats, a North Carolina limited liability company. Proceeds will be used to finance the acquisition, construction and equipping of a 184-unit multifamily rental housing development known as Avenue Flats. The project is designed to accommodate low-income families and will be located on South Kerr Avenue.
The Durham Housing Authority (Durham County) was given a green light to issue $22.5 million in conduit revenue bonds to be loaned to Briggs Avenue, a North Carolina limited liability company. Proceeds will pay to acquire, build and equip a 124-unit multifamily residential facility to be known as 902 S. Briggs Avenue. The housing is designed for lower-income households.
The town of Mooresville (Iredell County) received a favorable vote to issue $16 million in limited obligation bonds to renovate Moor Park. The modernization work is necessary to accommodate a Coastal Plain League team. The summer league comprises 15 teams of college baseball players. Bond proceeds also will be used to make improvements at Lee Street Park and the Mooresville Public Library.
Nash County’s application for an installment purchase totaling nearly $11.8 million received a thumbs up from the commission. An installment purchase allows payback of the debt over time, not all up front. The county plans to renovate the County Administration Building, install field lighting at Miracle Park, improve the Old County Courthouse, renovate a medical office building for use by county health services, and perform the first phase of the recreation center renovation.
The town of Morrisville (Wake County) got the LGC’s nod of approval to issue $10.75 million in limited obligation bonds. Proceeds will finance the acquisition of a building for renovation and conversion into public works space.
LGC members OK’d Lincoln County’s $11.1 million application to issue limited obligation bonds to add classrooms at St. James Elementary School in Denver. The school is over its 640-student capacity. A cafeteria also will be added with proceeds from the bonds.
In other action, LGC members approved applications from:
- Pineville (Mecklenburg County), $7.5 million in revenue bonds to build a new electric substation. Electric rate increases will be implemented of 4.9 % in 2027, 4.5% in 2028, and 2.5% from 2029-2031.
- Angier (Harnett County), $7.25 million installment purchase to design, build and equip a new, larger police station.
- The town of Zebulon (Wake County), $4.6 million for an installment purchase to design, build and equip a fire station and emergency medical services station.
- Elizabeth City (Pasquotank County), $5.62 million to enter into a lease agreement to replace 33 aging vehicles in its motor fleet. The city expects to reduce costs and ensure reliable vehicles. The city also was granted approval for a $500,000 financing agreement to lease maintenance equipment for use by the city and county parks and recreation departments. A third approved request was for a $400,000 state Department of Environmental Quality (DEQ) loan to inventory water lines for the presence of lead or copper.
- Nags Head (Dare County), a $2.7 million installment purchase to build a 6,000-square-foot Employee Wellness Facility. The second floor will have seasonal housing units for summer employees of the Ocean Rescue Service. The existing Town Hall building on South Croatan Highway site will be demolished to accommodate the construction. The town also is requesting approval of a $500,000 low-interest loan from DEQ. The money will be used as a revolving loan fund to provide low-interest loans to homeowners for septic system repairs or replacement. Over 85% of the town’s wastewater is treated by septic systems.
- Cape Fear Public Utility Authority (New Hanover County), $500,000 State Revolving Fund loan to replace lead and galvanized water service lines.
- Maysville (Jones County), a $260,000 installment purchase for four vehicles and equipment to replace aging vehicles and outdated equipment.
In other business, LGC members received a report on counties and municipalities that are not compliant with the statute requiring timely submission of annual audit reports to the LGC, and considered appeals from some of those entities. By law, the LGC may direct the Department of Revenue to withhold a portion of sales tax distribution from counties and municipalities that are not in compliance.