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Adopt the Bond Orders for the Two-Thirds Bonds and Adopt a Resolution Authorizing the Issuance of $3,205,000 of Two-Thirds Bonds and $4,755,000 of Referendum Bonds.
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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 and the first issuance of the 2018 General Obligation (GO) referendum bonds for Affordable Housing. On March 24, 2021, the Council held a public hearing on the bond orders for the two-thirds bonds. The next step in the issuance process is for Council to adopt the bond orders for the two-thirds bonds and to adopt a resolution formally authorizing the issuance of both the two-thirds bonds and the referendum bonds.
Recommendation(s):
That the Council:
1. Adopt the bond orders authorizing the issuance of two-thirds general obligation bonds in the maximum amount of $3,205,000 for parks and recreation, public safety and streets and sidewalks.
2. Adopt the resolution authorizing the issuance of $3,205,000 of two-thirds bonds and $4,755,000 of referendum bonds.
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 Statut...
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