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Open the Public Hearing: Issuance of Two-Thirds Bonds to Fund Parks and Recreation, Public Safety, and Streets and Sidewalks Projects in the Capital Improvements Plan (CIP).
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Staff:
Department:
Amy Oland, Director
Business Management
Overview: The Business Management Department is pursuing the issuance of $3.205 million of "two-thirds" bonds to fund parks and recreation, public safety, and streets and sidewalks projects in the Capital Improvements Plan (CIP). On March 10, 2021, the Council formally introduced the Bond Orders and set a public hearing for March 24, 2021. Staff applied to the Local Government Commission (LGC) for the issuance of the two-thirds bonds and has taken other actions necessary to meet statutory requirements. The two-thirds bonds would be sold April 27, 2021 in conjunction with an initial issuance of the 2018 referendum general obligation (GO) bonds for affordable housing.
Recommendation(s):
That the Council hold a public hearing on the bond orders authorizing the issuance of general obligation bonds in the maximum amount of $3,205,000 for parks and recreation, public safety, and streets and sidewalks projects.
Key Issues:
Two-Thirds Bonds Background
* Under the Local Government Bond Act, the "two-thirds" rule authorizes local governments to issue general obligation bonds without a referendum under certain circumstances.
* Two-thirds bonds are restricted to two thirds of the net reduction in general obligation bond principal for the previous fiscal year. The Town's reduction in principal for FY 2020 was $4,812,000, two thirds of which is approximately $3,205,000. Two-thirds bonds must be issued in the fiscal year immediately following the year for which the principal reduction is calculated.
* Two-thirds bonds are also restricted to certain uses including streets, parks, public facilities, and public safety. All other allowable purposes are listed under Section 159-48 of NC General Statute, Chapter 159, Article 4 (th...
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