Local Government Commission Approves Water Requests for Drinking and Wastewater as well as PFAS Treatment

The Local Government Commission (LGC) approved more than $814 million in financing requests at its Aug. 4 meeting, with proposals supporting drinking water and wastewater infrastructure, PFAS treatment, stormwater improvements, school renovations, public safety facilities, affordable housing and senior living projects across North Carolina.

Among the largest approvals by the Commission was Greensboro's request for up to $290 million in revenue bond anticipation notes to finance improvements to the city's water and sewer system. The proposed projects include upgrades to the T.Z. Osborne Wastewater Treatment Plant, improvements to the Mitchell and Lake Townsend water treatment plants for PFAS removal, water system resiliency improvements and infrastructure to support future economic growth.

The LGC also approved The Presbyterian Homes at Charlotte, Inc., doing business as The Sharon at SouthPark, for up to $200 million in conduit revenue bonds issued through the North Carolina Medical Care Commission. The financing will support construction of new independent living units, wellness facilities and other campus improvements at the continuing care retirement community.

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 North Carolina. The commission examines whether proposed borrowing is adequate and reasonable for each project and determines whether local governments can reasonably afford to repay the debt. It also monitors the financial well-being of more than 1,100 local government units.

The Commission also considered financing requests from Newport and Norwood, both recently released from the Unit Assistance List (UAL), as well as the financing request from Greensboro, which was presented separately because of Financial Performance Indicators of Concern (FPICs) identified in its most recent audit. LGC staff reviewed Greensboro's corrective action plan and determined the city's response was acceptable.

Additionally, commissioners approved appeals related to Notices of Noncompliance under North Carolina's audit reporting law. Thirty-five local governments had qualified for successful appeals after meeting the Commission's established guidelines.

In other matters on the agenda, the Commission approved requests for:

• Charlotte (Mecklenburg County): $110 million in revenue bond anticipation notes for stormwater improvements, including flood control projects and system upgrades.
• Fayetteville Public Works Commission (Cumberland County): $62.5 million in State Revolving Fund loans for construction of granular activated carbon facilities to remove PFAS from drinking water.
• Fayetteville Public Works Commission (Cumberland County): Up to $67 million in future revenue bonds to complete financing for the same PFAS treatment project.
• Guilford County: $13.5 million as an installment financing contract to acquire Axon body-worn cameras and related equipment for the Sheriff's Office.
• Lincoln County: $26 million in limited obligation bonds for renovations and improvements at Rock Springs Elementary School and Catawba Springs Elementary School.
• Oxford (Granville County): $3.626 million in interim financing for water and sewer infrastructure improvements, which will be repaid by USDA revenue bonds at a later date.
• Person County: $10.2 million in limited obligation bonds for improvements at four public elementary schools.
• Valdese (Burke County): $10.8 million as an installment financing contract for construction of a new public safety facility housing police and fire departments.
• Wilmington Housing Authority (New Hanover County): $20 million in conduit revenue bonds for acquisition and rehabilitation of the 150-unit Solomon Towers affordable housing community.
• Newport (Carteret County): $584,384 in lease financing for 11 public safety, utility and public works vehicles.
• Norwood (Stanly County): $149,934 in lease financing for two police vehicles.
• Greenville (Pitt County): Approval of voluntary fire department annexation agreements.
• Northern Hospital District of Surry County: Approval of a bond defeasance escrow arrangement related to the sale of Northern Regional Hospital to Novant Health.