LGC Approves $220 Million in Bonds; Portion Will Help Control Crabtree Valley Flooding

A project intended to relieve persistent storm flooding behind Crabtree Valley Mall and along streets and neighborhoods flanking Crabtree Creek is part of $220 million in bonds the Local Government Commission (LGC) approved today at the request of the city of Raleigh (Wake County).

According to the city's website, once easement acquisitions, permitting and the project bid are completed for the Crabtree Valley Sewer Improvement Project, construction is expected to begin this summer. The project involves installation of about 15,000 feet of larger diameter sewer lines to replace aging materials and narrower infrastructure from the Mine Creek improvements area to just east of Duraleigh Road. The upgrades will address flooding during heavy rainfall that can make roads impassable, affect businesses and cause raw sewage discharges into Crabtree Creek.

Other water and sewer projects that are part of the capital city's bond package include an upgrade to the Smith Creek Wastewater Treatment Plant, Lake Benson and Lake Wheeler dam improvements, Mine Creek Outfall sewer line replacement, West Neuse Sewer interceptor pipe replacement and various water and sewer main replacements.

The projects are in varying stages of progress. Raleigh officials are seeking the financing through bond anticipation notes that can be drawn down as the projects move forward. No tax or rate increases are anticipated.

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 items on the agenda that were approved included a request from the city of Roxboro (Person County) for a $922,452 installment financing contract. The city plans to use the money to finance five police vehicles, one Fire Department truck, one garbage truck and one asphalt roller for street repair. Installment financing allows for payments to be made over time, rather than borrowing the full amount to pay costs up front.

LGC members received a report regarding a bond issued by the city of Monroe (Union County) to refund previous bonds at a lower interest rate, garnering $484,363 in savings. No action is necessary.

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