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Call a Public Hearing for a Time Extension to Issue 2015 General Obligation (G.O.) Bonds for October 12, 2022.
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Staff: |
Department: |
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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.
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Recommendation(s): |
That the Council adopt the resolution to:
1) Call a public hearing on extending the time for the Town to issue the general obligation bonds originally authorized in 2015; and
2) Authorize the Town Manager, Finance Officer, and other Town representatives to take all appropriate action toward carrying out the purposes of this resolution.
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:
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BOND ORDER |
AUTHORITY |
ISSUED |
BALANCE |
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Streets & Sidewalks |
$ 16,200,000 |
$ 8,500,000 |
$ 7,700,000 |
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Trails & Greenways |
5,000,000 |
5,000,000 |
0 |
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Recreation Facilities |
8,000,000 |
5,300,000 |
2,700,000 |
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Solid Waste Facility |
5,200,000 |
0 |
5,200,000 |
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Stormwater Improvements |
5,900,000 |
2,700,000 |
3,200,000 |
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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:
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Event |
Proposed Date |
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Town sends letter to Local Government Commission requesting the three-year extension |
Done - submitted on May 16, 2022 |
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Local Government Commission approves the extension at a monthly Board meeting |
Done - approved on July 12, 2022 |
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Council adopts a resolution authorizing a public hearing on whether the time to issue bonds should be extended |
Scheduled for Council meeting on September 14, 2022 |
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Town publishes Notice of Public Hearing |
At least six days’ prior to public hearing date (no later than October 6th) |
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Council holds the public hearing; Council adopts order approving the three-year extension |
Scheduled for Council meeting on October 12, 2022 |
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Town publishes notice of extension |
Promptly after the October 12th meeting |
Where is this item in its process?
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Attachments: |
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• Resolution |
A RESOLUTION CALLING FOR A PUBLIC HEARING ON EXTENDING THE TIME FOR THE TOWN OF CHAPEL HILL TO ISSUE GENERAL OBLIGATION BONDS ORIGINALLY AUTHORIZED IN 2015 (2022-09-14/R-8)
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 of $40,300,000; and
WHEREAS, the Town has not yet issued $18,800,000 of these bonds as follows:
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PURPOSE |
DATE APPROVED |
BALANCE |
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Streets and Sidewalks |
11/03/2015 |
$7,700,000 |
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Parks and Recreation |
11/03/2015 |
$2,700,000 |
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Stormwater |
11/03/2015 |
$3,200,000 |
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Solid Waste |
11/03/2015 |
$5,200,000 |
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TOTAL |
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$18,800,000 |
WHEREAS, the Town’s authorization to issue these bonds will expire in November 2022, unless the time is extended as provided by law; and
WHEREAS, the North Carolina Local Government Commission (the “LGC”) has approved the extension and now Council must take its required steps for the extension.
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that:
1. The Town will hold a public hearing on the question of whether the time to issue the bonds as approved at the 2015 referendum should be extended for October 12, 2022 at 7pm in the Town Hall Council Chamber, 405 Martin Luther King Jr Blvd, Chapel Hill, NC 27514. The Town Manager, in collaboration with the Town Clerk, is directed to schedule the public hearing and to provide for notice of the public hearing in the manner provided by law.
2. The Council authorizes the Town Manager, the Finance Officer, and all other Town officers and representatives to take all appropriate action toward carrying out the purposes of this resolution. The Council ratifies all prior actions of Town officers and representatives related to the transactions contemplated by this resolution.
This the 14th day of September, 2022.
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The Agenda will reflect the text below and/or the motion text will be used during the meeting. |
presenter
By adopting the resolution, the Council:
1) Calls a public hearing to extend the time for the Town to issue the general obligation bonds originally authorized in 2015; and
2) Authorizes the Town Manager, Finance Officer, and other Town representatives to take all appropriate action toward carrying out the purposes of this resolution.