Surging population growth in the town of Holly Springs has resulted in the need for new and upgraded infrastructure to meet higher demand, and the Local Government Commission (LGC) today approved $135 million in revenue bonds for projects to meet the town’s needs.
The town, located in Wake County, has seen a population boom from 24,661 in 2010 to 48,674 in 2024, according to U.S. Census data.
A portion of the revenue bond proceeds will be used to redeem a 2025 note that paid for upgrades to the Utley Creek Water Reclamation Facility. Remaining proceeds will be used to rehabilitate existing components and to build new infrastructure at the facility to increase treatment capacity from 6 million gallons per day to 8 million gallons to serve the growing population. A forecasted water/sewer rate increase ranging from a high of 15% to a low of 9% could be imposed through fiscal year 2031.
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.
Other requests on the agenda for today’s LGC meeting included an application from the city of Greensboro (Guilford County) to issue $29.8 million in limited obligation bonds to fund a variety of municipal projects. About $21 million of the proceeds will pay for improvements and retrofitting of First Horizon Coliseum for sporting and other events including a 2027 ACC Basketball Tournament. A portion of the proceeds will be used to improve the city’s fleet servicing garage and to address contaminated, hazardous and unsuitable soils at that site. Limited obligation bonds do not require voter approval.
The LGC gave a green light to Jackson County officials for a $27 million installment financing contract to build a new County Administration Building. The new structure is intended to relieve overcrowding in existing county facilities. Part of the financing will be used to renovate Fairview School and to complete Smokey Mountain High School athletic track improvements. Installment financing allows the borrower to pay over time rather than taking on debt to pay all costs up front. A tax increase of $0.04 above revenue neutral per $100 of assessed property value was included in the fiscal year 2026 budget for the projects.
The North Carolina Capital Facilities Finance Agency received authorization to issue about $15.3 million in conduit revenue bonds. Proceeds will be used to refund two previous bond issues whose proceeds were loaned to Endeavor Charter School (Wake County) to build its K-12 campus in Wake Forest. A conduit revenue bond allows the issuer to loan proceeds to a third party.
The LGC voted in favor of a request from Kernersville (Forsyth County) for an installment financing contract totaling about $13.7 million for multiple projects. Those include fencing at the Ivey Redmon Soccer Fields; infrastructure, community pool and bathhouse at Pope Park; renovations to the upstairs carriage house at the botanical garden facility; installation of ballroom dividers at the botanical garden welcome center area; roof replacement at the old library; fencing at the public services yard; renovations to the police locker rooms and restrooms at the town hall.
LGC members signed off on requests from the towns of Wilkesboro and North Wilkesboro (Wilkes County) for a combined $15.2 million in water infrastructure projects. Wilkesboro can now obtain a State Revolving Fund loan of about $8.5 million. Money will be used to replace both Wilkesboro and North Wilkesboro’s raw water intake with a joint intake along the Yadkin River and to install new water lines. The Wilkesboro water rate is anticipated to increase 15.7% and the sewer rate by 15.8% by the end of the project in fiscal year 2028. North Wilkesboro got a thumbs up to use a $6.7 million State Revolving Fund loan for the joint water intake project. Water rates are anticipated to increase by 3% by the end of the project in fiscal year 2028.
Other items LGC members approved include:
- Wayne County, $9 million installment financing contract to pay a portion of the costs of acquiring, constructing and equipping a new middle school called Rosewood Middle School and to complete a fifth-grade wing expansion to Rosewood Elementary School.
- Hillsborough (Orange County), $8.5 million in revenue bonds to renovate and expand the Adron F. Thompson building. The work will include a new welding shop, stockroom for inventory, additional office space, storage and restrooms. A projected increase of 7.5% in water and sewer base rates could be implemented in fiscal years 2027 to 2031.
- City of Dunn (Harnett County), $3.5 million in limited obligation bonds, for partial reimbursement for land purchases to be used to expand the footprint for future infrastructure needs and future expansion of the city’s water treatment plant.
In addition to considering debt approval requests, LGC members discussed a warning letter sent in late February to the Town Council of Littleton (Halifax County) by LGC Secretary Denise Canada. Littleton, whose population is about 450 people, has not submitted its required annual audited financial statements to the LGC since Dec. 21, 2020, making it further behind than any other local government in the state. The letter expressed a lack of confidence in the town’s ability to return to a state of financial compliance. It further warned that the LGC can impound the town’s books and records and assume full control of financial affairs should noncompliance continue. The Secretary requested that Littleton representatives appear at the April 1 LGC meeting to address the town’s corrective plans.