State approves $600M in borrowing for North Carolina municipalities

State approves $600M in borrowing for North Carolina municipalities
·3 min read

Charlotte is poised to borrow more than $100 million for public safety and housing development projects.

North Carolina's Local Government Commission (LGC) unanimously approved Charlotte’s plan Tuesday to borrow nearly $125 million for police and fire stations, a police helicopter and to fund other capital improvement projects. The Charlotte Housing Authority also received unanimous approval to borrow more than $40 million in bonds for two multiple-family housing developments.

The LGC, which is chaired by State Treasurer Dale Folwell, and staffed by the Department of State Treasurer, must monitor the finances of more than 1,100 local government units. The commission also approves borrowing for the units after determining whether they can afford to repay the debt. The commission approved nearly $600 million in refinancing requests Tuesday.

Charlotte plans to build three new police stations and a new fire station and to acquire land for future fire stations. Its other projects include an animal care and control facility renovation, and the city also will buy a new fleet repair station. The financing would not lead to a tax increase for city residents. The debt service will be paid from revenues to the Municipal Debt Service Fund.

Residents in Garner will see a property tax rate increase of up to 2 cents per $100 of valuation under a financing plan approved Tuesday by the LGC. The commission green-lighted Garner’s plan to sell $69 million in general obligation bonds.

More than $35 million would be used for new parks and greenways and to improve existing ones. Another $24 million would be used for new streets, bike lanes and sidewalks, and $6.5 million would pay for the construction and expansion of public safety facilities. The remaining $2.9 million would be spent on stormwater improvements.

Morrisville homeowners will see a property tax increase of up to 3 cents per $100 of valuation under the town’s plan. The LGC approved $37 million in the sale of general obligation bonds for parks and recreation improvements, construction, transportation projects, new fire stations and other public safety improvements. The town’s population increased by 68.9% from 18,745 in 2010 to 31,670 in 2019, according to U.S. Census Bureau data.

The LGC approved $13.5 million in general obligation bonds for Mount Holly. It would lead to a 7.5 cents per $100 of valuation property tax increase for residents. The money will be used for land to connect the city’s greenway system and new parks.

Other financing requests approved Tuesday by the LGC:

• Lincoln County: $20 million to build an emergency management building;

• Nash County: $16 million for a new detention center;

• Shelby: $10 million for streets and sidewalks;

• Vance County: $5.1 million for maintenance projects at multiple schools;

• Dare County: $3 million to purchase land for an emergency management service station and youth center;

• Brevard: $2.3 million to build a new community center building and parking lot;

• Elizabethtown: $2 million for street repair and resurfacing.

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Tags: News, State, North Carolina

Original Author: Nyamekye Daniel, The Center Square

Original Location: State approves $600M in borrowing for North Carolina municipalities

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