title
Open the Public Hearing and Consider a Time Extension to Issue 2015 General Obligation (G.O.) Bonds.
body
|
Staff: |
Department: |
|
Amy Oland, Director |
Business Management |
Overview: The Town of Chapel Hill has $18.8 million that has not been issued from the 2015 general obligation bonds. The authority to issue these bonds will expire in November 2022. We recommend extending the issuance period an additional three years.
|
|
Recommendation(s): |
That the Council:
1) Hold the public hearing on the extension of time for the Town to issue the general obligation bonds originally approved at the 2015 referendum; and
2) Approve the bond order authorizing the extension of time for the Town to issue the general obligation bonds originally approved at the 2015 referendum.
Key Issues:
• In November 2015, Chapel Hill residents voted on a referendum authorizing the issuance of general obligation bonds for a variety of purposes in the maximum amount of $40,300,000.
• The five bond orders, the amount authorized by voters, the amount issued by the Town, and the remaining balance are as follows:
|
BOND ORDER |
AUTHORITY |
ISSUED |
BALANCE |
|
Streets & Sidewalks |
$ 16,200,000 |
$ 8,500,000 |
$ 7,700,000 |
|
Trails & Greenways |
5,000,000 |
5,000,000 |
0 |
|
Recreation Facilities |
8,000,000 |
5,300,000 |
2,700,000 |
|
Solid Waste Facility |
5,200,000 |
0 |
5,200,000 |
|
Stormwater Improvements |
5,900,000 |
2,700,000 |
3,200,000 |
|
Total |
$ 40,300,000 |
$ 21,500,000 |
$ 18,800,000 |
• Once general obligation bonds are authorized by voters in a referendum, the Town may issue them at any time within seven years after the bond order takes effect. The Town currently has until November 3, 2022 to issue the 2015 bonds.
• Per North Carolina General Statute 159-64, the issuance period may be extended an additional three years as long as the bond orders have not expired. The new expiration date would be November 3, 2025.
• We request the extension because it has taken longer to complete design, permit, and construct these projects. A three-year extension would provide the necessary time to complete the projects.
• The Solid Waste Facility is not currently in the Town’s funded 5-year capital project plan, however, the Town would like to request the extension authority to have the flexibility if circumstances change.
• The process to extend the bonds is as follows:
|
Event |
Proposed Date |
|
Town sends letter to Local Government Commission requesting the three-year extension |
Done - submitted on May 16, 2022 |
|
Local Government Commission approves the extension at a monthly Board meeting |
Done - approved on July 12, 2022 |
|
Council adopts a resolution authorizing a public hearing on whether the time to issue bonds should be extended |
Done - approved by Council on September 14, 2022 |
|
Town publishes Notice of Public Hearing - at least six days’ prior to public hearing |
Done - published on October 5, 2022 |
|
Council holds the public hearing; Council adopts order approving the three-year extension |
Scheduled for Council meeting on October 12, 2022 |
|
Town publishes notice of extension |
Promptly after the October 12th meeting |
Where is this item in its process?
|
|
Attachments: |
|
|
• Resolution for Bond Order Time Extension |
|
|
• Draft Staff Presentation |
A RESOLUTION FOR BOND ORDER TIME EXTENSION (2022-10-12/R-9)
Order Extending Time for the Town of Chapel Hill to Issue General Obligation Bonds Originally Approved at 2015 Referendum
WHEREAS -
At a referendum held on November 3, 2015, the voters of the Town of Chapel Hill authorized the issuance of Town general obligation bonds for a variety of purposes in the maximum aggregate amount of $40,300,000. The Town has not yet issued $18,800,000 of these bonds, as follows:
|
PURPOSE |
DATE APPROVED |
BALANCE |
|
Streets and Sidewalks |
11/03/2015 |
$ 7,700,000 |
|
Parks and Recreation |
11/03/2015 |
$ 2,700,000 |
|
Stormwater |
11/03/2015 |
$ 3,200,000 |
|
Solid Waste |
11/03/2015 |
$ 5,200,000 |
|
TOTAL |
|
$ 18,800,000 |
The Town’s authorization to issue these bonds will expire in November 2022, unless the time is extended as provided by law. The Town needs additional time to complete the projects to be financed from the bonds approved in 2015, and to carry out the bond financings. It is in the Town’s best interest to extend the time to issue the Bonds.
The North Carolina Local Government Commission has approved an extension, and the Town’s governing board has held a required public hearing on the question of whether the authorization should be extended. The Council must now adopt an Order to give final approval to the extension.
BE IT THEREFORE ORDERED by the Town Council of the Town of Chapel Hill, North Carolina, as follows:
1. The Council approves the actions of the North Carolina Local Government Commission in extending the maximum time period for issuing bonds under the bond orders entitled as follows:
BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR STREETS AND SIDEWALKS IN THE MAXIMUM AMOUNT OF $16,200,000
BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR RECREATIONAL FACILITIES IN THE MAXIMUM AMOUNT OF $8,000,000
BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR STORMWATER IMPROVEMENTS IN THE MAXIMUM AMOUNT OF $5,900,000
BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR SOLID WASTE FACILITIES IN THE MAXIMUM AMOUNT OF $5,200,000
which took effect upon the approval by the qualified voters in the Town on November 3, 2015, from seven to ten years after the date that each bond order took effect. The time period is so extended.
2. The Council directs the Town Clerk to publish a notice, in the form prescribed by statute, of the Council’s adoption of this Order.
3. This Order shall take effect 30 days after its publication as provided in the preceding paragraph.
This the 12th day of October, 2022.
end
|
The Agenda will reflect the text below and/or the motion text will be used during the meeting. |
presenter
PRESENTER: Amy Oland, Business Management Director
a. Introduction and recommendation
b. Comments from the public
c. Comments and questions from the Mayor and Town Council
d. Motion to close the Public Hearing
e. Motion to Adopt the Resolution adopting bond order extending time to issue bonds
RECOMMENDATION: That the Council hold the public hearing and approve the bond order authorizing the time extension of time to issue the general obligation bonds originally approved at the 2015 Referendum.