AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE*
title
Approve the Budget and Project Ordinance Amendments to Recognize Series 2025 General Obligation Bond proceeds
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT*
Amy Oland, Director, Business Management Department
STAFF RECOMMENDATION*
Staff recommends that Council:
• Enact the attached project ordinance amendment to establish a budget for the 2024 Public Facilities Bond Fund; and
• Enact the attached project ordinance amendment to establish a budget for the 2024 Affordable Housing Bond Fund; and
• Enact the attached project ordinance amendment to establish a budget for the 2024 Streets & Sidewalks Bond Fund; and
• Enact the attached project ordinance amendment to establish a budget for the 2024 Parks & Recreation Bond Fund; and
• Enact the attached budget ordinance to amend the budget for the Stormwater Fund to recognize Series 2025 Stormwater referendum bonds.
body
ACTION/DECISION POINTS*
Council must approve the project and budget ordinance amendments for the Town to receive and allocate proceeds from the first sale of the 2025 referendum bonds ($10,630,000) and the final sale of the 2015 referendum bonds ($3,200,000)
LEGISLATIVE CONTEXT*
To issue general obligation bonds, federal and state statutes require Council to approve an ordinance that recognizes the bond proceeds and appropriates them for the intended projects.
BACKGROUND AND CONTEXT*
2024 General Obligation Bonds ($10,630,000)
• In November 2024, Chapel Hill voters approved a general obligation bond order totaling $44.0 million for public facilities ($15 million), affordable housing ($15 million), streets & sidewalks ($7.5 million), parks & recreation ($4.5 million), and open space & greenways ($2 million).
• Projects planned for this first issuance under this authority are as follows:
o $1,230,000 - Design work for Fire Station #4 on Weaver Dairy Road.
o $3,500,000 - Affordable Housing partner projects that will focus on high impact development and rehabilitation projects that create and preserve affordable housing within the Town (RFP will be issued this summer and recommended funding plan will come to Council in the fall).
o $2,000,000 - Construction of a 10-food wide sidepath adjacent to the east side of Fordham Boulevard Sidepath from Cleland Drive to Willow Drive. This funding will supplement federal funding and 2023 bonds issued for the project and is needed to account for higher than anticipated construction costs.
o $700,000 - Local match for federal funding to address design, right-of-way acquisition, and construction on a package of six sidewalk gap projects in Chapel Hill which were identified as Tier 1 sidewalk projects in the Town’s sidewalk prioritization list.
o $500,000 - ADA transition plan projects including - concrete sidewalks, truncated domes, ADA ramp replacements, brick sidewalks, audible pedestrian signals, missing sidewalk gaps, and railing repairs throughout the town.
o $2,200,000 - Ephesus Church Road Sidewalk replacement project will add 3,200 linear feet of new sidewalks and connect the existing sidewalks from East of Pinehurst to Colony Woods, from Sharon Road to Pope Road, and from Eden Drive to 15-501 Bypass.
o $500,000 - Replacement of the climbing wall at the Community Center.
2015 General Obligation Bonds ($3,200,000)
• In November 2015, Chapel Hill voters approved a general obligation bond order for $40.2 million for streets and sidewalks, parks & recreation, open space & greenways, stormwater, and solid waste. The extended issuance authority for these bonds expires in November 2025.
• Projects planned for this final issuance under this authority are as follows:
o $2,350,000 - The Bolinwood Bridge is over 50 years old and was not constructed to safely accommodate pedestrians and cyclists. Replacement of this bridge is critical, as continued deterioration could lead to failure of the bridge which could disrupt natural drainage patterns.
o $850,000 - The Legion Road project consists of pond drainage, existing dam removal, new modified dam replacement, and site grading to facilitate the future installation of new stormwater control measures in the form of a constructed wetland at the American Legion property.
Bond Sale & Closing
• On June 24, 2025, the Town closed on the issuance of $13,830,000 of general obligation public facilities ($1.23 million), affordable housing ($3.5 million), streets & sidewalks ($5.4 million), and parks & recreation $0.5 million) referendum bonds. The total amount of the proceeds, including a bond premium is $14,760,786; $14,488,777 is available for project use and $272,009 is to pay costs associated with the financing.
• The Town fared very well in the market during the sale of bonds yielding a sizeable premium. Staff recommends putting the available premium of $658,777 ($930,786 premium less $272,009 issuance costs) in a reserve until projects are bid out to help provide funding that will most likely be needed to help manage the continued high cost of construction and inflation.
ATTACHMENTS
Project Ordinance - 2024 Public Facilities Bond Fund
Project Ordinance - 2024 Affordable Housing Bond Fund
Project Ordinance - 2024 Streets & Sidewalks Bond Fund
Project Ordinance - 2024 Parks & Recreation Bond Fund
Budget Ordinance - Stormwater Fund
AN ORDINANCE TO ESTABLISH A CAPITAL PROJECTS ORDINANCE FOR PUBLIC FACILITIES PROJECTS FUNDED FROM 2024 GENERAL OBLIGATION BONDS (2025-06-25/O-1)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 49 of Chapter 159 of the General Statutes of North Carolina, the following capital project hereby established for public safety facility projects funded from the 2024 General Obligation Bonds.
“SECTION I
The capital projects as authorized by General Statute, and as determined by the Town Council, includes the capital costs of public facilities.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are hereby established as follows:
SECTION IV
Amounts appropriated for capital projects are hereby established as follows:
SECTION V
The Town Manager is directed to report annually on the financial status of the projects in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.
SECTION VI
Copies of this projects ordinance shall be entered into the minutes of the Council and copies shall be filed within five days of adoption with the Manager, Business Management Director and Town Clerk.”
This the 25th day of June, 2025.
AN ORDINANCE TO ESTABLISH A CAPITAL PROJECTS ORDINANCE FOR AFFORDABLE HOUSING PROJECTS FUNDED FROM 2024 GENERAL OBLIGATION BONDS (2025-06-25/O-2)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 49 of Chapter 159 of the General Statutes of North Carolina, the following capital project hereby established for affordable housing projects funded from the 2024 General Obligation Bonds.
“SECTION I
The capital projects as authorized by General Statute, and as determined by the Town Council, includes the capital costs of affordable housing.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are hereby established as follows:
SECTION IV
Amounts appropriated for capital projects are hereby established as follows:
SECTION V
The Town Manager is directed to report annually on the financial status of the projects in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.
SECTION VI
Copies of this projects ordinance shall be entered into the minutes of the Council and copies shall be filed within five days of adoption with the Manager, Business Management Director and Town Clerk.”
This the 25th day of June, 2025.
AN ORDINANCE TO ESTABLISH A CAPITAL PROJECTS ORDINANCE FOR STREETS & SIDEWALKS PROJECTS FUNDED FROM 2024 GENERAL OBLIGATION BONDS (2025-06-25/O-3)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 49 of Chapter 159 of the General Statutes of North Carolina, the following capital project hereby established for streets & sidewalks projects funded from the 2024 General Obligation Bonds.
“SECTION I
The capital projects as authorized by General Statute, and as determined by the Town Council, includes the capital costs of streets & sidewalks.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are hereby established as follows:
SECTION IV
Amounts appropriated for capital projects are hereby established as follows:
SECTION V
The Town Manager is directed to report annually on the financial status of the projects in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.
SECTION VI
Copies of this projects ordinance shall be entered into the minutes of the Council and copies shall be filed within five days of adoption with the Manager, Business Management Director and Town Clerk.”
This the 25th day of June, 2025.
AN ORDINANCE TO ESTABLISH A CAPITAL PROJECTS ORDINANCE FOR PARKS & RECREATION PROJECTS FUNDED FROM 2024 GENERAL OBLIGATION BONDS (2025-06-25/O-4)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 49 of Chapter 159 of the General Statutes of North Carolina, the following capital project hereby established for parks & recreation projects funded from the 2024 General Obligation Bonds.
“SECTION I
The capital projects as authorized by General Statute, and as determined by the Town Council, includes the capital costs of parks & recreation.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are hereby established as follows:
SECTION IV
Amounts appropriated for capital projects are hereby established as follows:
SECTION V
The Town Manager is directed to report annually on the financial status of the projects in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.
SECTION VI
Copies of this projects ordinance shall be entered into the minutes of the Council and copies shall be filed within five days of adoption with the Manager, Business Management Director and Town Clerk.”
This the 25th day of June, 2025.
AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2024” (2025-06-25/O-5)
BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2024” as duly adopted on June 5, 2024, be and the same is hereby amended as follows:
ARTICLE I
ARTICLE II
This the 25th day of June, 2025.
end