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Consider a November 2024 Bond Referendum Preliminary "Findings" Resolution.
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Staff:
Department:
Amy Oland, Director
Business Management
Overview: The Town is pursuing a referendum for general obligation bonds for affordable housing, public facilities, streets & sidewalks, parks and recreation facilities, and open space/greenways for the November 2024 ballot.
Recommendation(s):
That the Council adopt the preliminary resolution stating Chapel Hill's intent to proceed with a referendum for general obligation bonds in November 2024.
Key Issues:
Explanation of Referendum Process
* In the State of North Carolina, public approval is required for the issuance of most municipal general obligation (GO) bonds. Public approval is gained through a public vote or referendum. Referendum questions for municipal GO debt must be broken out into bond orders that authorize issuance of bonds for a particular purpose. The amount of a bond order is the maximum amount that can be borrowed.
* In collaboration with the Town's financial advisors, Town staff determined that the amount of available debt capacity over the next 5 years, without the need for a property tax increase, after the June 2024 installment financing, is $44 million.
* To determine the make-up of the bond orders and amounts proposed for the referendum, we asked departments to provide their top three capital project requests that supported Everywhere to Everywhere, the Affordable Housing Plan, and other Town master plans, Council goals, and community interests.
* After several planning sessions with Council, we propose the following bond orders and amounts:
BOND ORDER
AMOUNT
Affordable Housing
$ 15.0 million
Public Facilities
15.0 million
Streets & Sidewalks
7.5 million
Parks & Recreation Facilities
4.5 million
Open Space/Greenways
2.0 million
$ 44.0 million
Explanation of Timeline
* The preliminary resolution, among other things, establishes th...
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