LGC Approves $200 Million Bond to Pay for Charlotte Street and Neighborhood Projects

The city of Charlotte (Mecklenburg County) will move forward with long-planned street work and neighborhood improvements after receiving Local Government Commission (LGC) approval of a $200 million request to issue a short-term bond.

At the commission's Oct. 7 meeting, LGC members approved general obligation bond debt authorizations passed by voters in 2020 and 2022. The stated purpose of the transportation referenda included improving traffic flow, reducing congestion, repairing bridges and sidewalks, resurfacing, enlarging and extending streets and upgrading traffic signals. Proposed neighborhood projects included infrastructure improvements, new sidewalks, bicycle and pedestrian paths, and providing open space. Charlotte will draw down funds as advances on an as-needed basis to pay for the projects as work commences.

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.

Among other items on the agenda was an application from The Fayetteville Public Works Commission (Cumberland County). The LGC approved issuance of $163 million in revenue bonds that will allow Fayetteville officials to complete 16 water, sewer and electric system projects. The capital improvements work is intended to improve service and operations. No tax increase is expected. However, utility rates are projected to rise over the 2026 to 2030 time span, from 2% to 5% for electric, 5.1% to 5.5% for water, and 5.8% to 5.5% for wastewater.

The N.C. Medical Care Commission successfully submitted requests to issue two conduit revenue bonds totaling nearly $70 million. The Medical Care Commission is empowered to issue tax-exempt bonds to finance construction and equipment projects for hospitals, nursing homes and continuing care facilities for the elderly. The LGC authorized a total of $35 million in financing to pay all or a portion of the costs to acquire, rehabilitate and equip nine senior living facilities in Burlington (Alamance County), Kernersville (Forsyth County) and Waynesville (Haywood County). A second request for about $34.2 million will be used to renovate, expand and improve Carol Woods retirement community on Weaver Dairy Road in Chapel Hill (Orange County).

South Granville Water and Sewer Authority (Granville County) received approval for $35 million in short-term financing in anticipation of U.S. Department of Agriculture revenue bonds in that same amount. Proceeds will be used to design, engineer and build three new lift stations and install 52,000 linear feet of sewer pipe to serve the area around Butner and Creedmoor. The existing wastewater collection system is at capacity, while developer interest in the area is booming.

The LGC signed off on a request from Sanford (Lee County) to issue $35 million in revenue bonds. Proceeds will be used to build a new utility administration building on City Hall Campus, and to acquire land, a water tank and a reservoir. The actions are part of Siler City's merger of its water and wastewater utilities with Sanford's TriRiver Water system. Projected water and sewer rate increases, by year, will be 4.75% in 2026; 6% in 2027; 8% in 2028; and12% in 2029 and 2030.

The LGC authorized a second filing from Sanford to enter into a $3.6 million installment financing contract to upgrade the City Hall campus with a greenway path, restroom facilities, splash pad, paving, fencing and stormwater culverts.

The Raleigh Housing Authority (Wake County) was given a thumbs up by the LGC for $23 million in conduit revenue bonds. Proceeds will be loaned to KTJ 427, a Minnesota limited partnership, to acquire, build and equip a 152-unit multifamily rental housing development on Strickland Road in Raleigh targeting low-income households.

Catawba Valley Medical Center (Catawba County) will enter into an $18.1 million lease financing agreement that will cover medical office space at three sites in Hickory. The action, approved by the LGC, will help consolidate and expand outpatient medical services.

LGC members received a brief update on the outside auditing process involving Winston-Salem/Forsyth County Schools. The district has been flagged for financial mismanagement. No action was taken.

In other action, LGC members approved applications from:

• Lee County, $7.8 million in limited obligation bonds, proceeds of which will be used to purchase two buildings and 4.59 acres of land on Hawkins Avenue for a public safety warehouse. The building will be used to store equipment and materials for the Sheriff's Department, Fire Marshal, Emergency Management Services and County of Lee Transportation System.
• Southern Pines (Moore County), $7 million for an installment financing contract to purchase a building and 1.83 acres of land on Broad Street in Pinehurst to meet growth needs of town staff.
• Northampton County, $6.4 million in short-term financing prior to issuance of U.S. Department of Agriculture revenue bonds in that same amount. Proceeds will be used to install over 150,000 linear feet of water transmission mains in the vicinity of Severn, Pendleton, Lake Gaston, Pleasant Hill and Conway in the northeastern part of the county.
• Shelby (Cleveland County), $4 million for a general obligation bond for street and sidewalk improvement. It is part of a $10 million issuance approved by voters and previously authorized by the LGC. Of the $10 million, $6 million was previously issued.
• Washington County, $3.2 million State Revolving Fund loan to install 37,350 linear feet of water line and a pump station along Highway 32 between Roper and Pea Ridge, and additional lines in the Pea Ridge community. The work is necessary to meet water demand while maintaining pressure.
• The town of Pittsboro (Chatham County), $1.05 million installment financing contract to purchase land and a building to be used by the Parks Department.
• Moore County, $561,133 lease financing agreement to purchase Taser weapons for the Sheriff's Department.
• Harnett County, $400,000 N.C. Department of Environmental Quality loan to inventory water service lines to determine whether lead and copper materials are present, to comply with federal regulations.

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