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Adopt a Resolution Certifying and Approving 2018 General Obligation (G.O.) Bond Referendum Results.
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Staff:
Department:
Amy Oland, Director
Business Management Department
Overview: On November 6, 2018, a bond referendum was held to consider one bond order for Affordable Housing capital projects totaling $10,000,000. The majority, 72%, of those voting approved the bond order. The next step in the referendum process is for the Council to adopt a resolution certifying the results and authorizing the publication of a statement of results.
Recommendation:
That the Council adopt the resolution certifying and approving the results of the November 6, 2018 General Obligation Bond Referendum.
Key Issues:
* In the State of North Carolina, public approval through a public vote or referendum is required for the issuance of most municipal general obligation (G.O.) bonds. Referendum questions for municipal G.O. debt must be broken out into bond orders that authorize issuance of bonds for a particular purpose, and each order requires a separate vote.
* The Town's Affordable Housing Investment Plan established a goal of developing 400 new affordable housing units and preserving 275 existing affordable units in the next five years.
* The bond order that went to vote was for $10,000,000 for affordable housing. The attached resolution includes the full text of the bond order.
Fiscal Impact/Resources:
* The Town's Debt Management Fund, created by Council in 2009, provides a dedicated source of funding (8.2 cents of the current property tax rate) for governmental (non-enterprise) Town debt. The affordable housing bonds will be repaid from the Debt Management Fund; however, there is insufficient capacity in the fund to support debt payments for the Town's existing capital program and affordable housing bond projects without an increase in the dedicated tax. Based on our assumptions concerning timing of issuance of bonds and interest rates, a 1 cent increa...
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