title
Adopt a Resolution of Intent to Issue Two-Thirds Bonds February 2023.
body
Staff:
Department:
Amy Oland, Director
Business Management Department
Overview: The Town is preparing to issue "two-thirds" bonds. Staff recommends the bonds to fund a high priority public safety project in the Capital Improvements Plan (CIP). The two-thirds bonds would be sold on February 14, 2023, in conjunction with an issuance of the 2018 affordable housing general obligation (GO) bonds and the 2015 streets and sidewalks general obligation (GO) bonds.
Recommendation(s):
That the Council adopt the resolution stating the Town's intent to issue general obligation public safety "two-thirds" bonds. The actual sale of the bonds is subject to further Council approval.
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 2022 was $2,977,000. Two thirds of which is approximately $1,984,667. 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 (the Local Government Bond Act).
Two-Thirds Bonds Project
* The availability of two-thirds bonds and the current cost of borrowing provide an opportunity to fund the replacement of the Town's public safety radio equipment.
* Effective, July 1, 2025, all radios active on the state's Voice Interoperability Plan for Emergency Responders (VIPER) system and all future radios added to the system must ...
Click here for full text