The Local Government Commission (LGC) approved $1.85 billion in financing applications at its meeting Tuesday, April 1. The projects included a vital extension of the Triangle Expressway in Raleigh to relieve longstanding and growing traffic congestion.
The LGC gave its stamp of approval to a request by the state of North Carolina for $475 million in Grant Anticipation Revenue Vehicle (GARVEE) bonds. GARVEE bonds are issued to allow the state to borrow against future receipts of federal transportation fund revenues for highway projects authorized for federal reimbursement. The funding mechanism allows the state to fund transportation projects today, repaying over time with future federal funds.
Of the total amount, $300 million would fund a portion of construction of about 10 miles of the Triangle Expressway extension projects in Wake County from I-40 to south of Rock Quarry Road, and from south of Rock Quarry Road to I-87/U.S. Route 64. The work is part of the State Transportation Improvement Plan to complete the I-540 outer loop around the capital city. Additionally, $175 million will be used to refund existing GARVEE bonds to generate debt service savings for the state.
State Treasurer Brad Briner chairs the LGC. The commission is staffed by the Department of State Treasurer (DST) and has a statutory duty to approve most debt issued by units of local government and public authorities in the state. The commission examines whether the amount of money that units borrow is adequate and reasonable for proposed projects and confirms the governmental units can reasonably afford to repay the debt. It also monitors the financial well-being of more than 1,100 local government units.
In other action-related items on the agenda, the LGC gave a nod of approval to a request from Wake County to issue $305 million in limited obligation bonds. Proceeds will refund prior financing and take out the outstanding balance of that pre-existing agreement. The money will enable the county to pay a portion of the costs for a new 17,000-square-foot Emergency Medical Services facility on Kildaire Farm Road in Cary.
The city of Raleigh (Wake County) received LGC approval for a bond anticipation note of up to $264 million as advances to pay for capital costs. The financing is part of a general obligation bond previously approved by city voters. The tax-exempt bond anticipation note will direct $99 million to transportation projects and $110 million to parks and recreation projects. A $55 million bond anticipation note would be issued on a taxable basis for housing projects.
A second request was approved for $85 million in general obligation public improvement bonds and $25 million in taxable housing bonds to redeem prior bond anticipation notes.
Raleigh also garnered approval of $21.5 million in general obligation bond refunding. The new bond is estimated to save $33,235 annually over a nine-year period.
Johnston County was given a green light to issue $150 million in general obligation bonds for K-12 and community college projects. Proceeds totaling $120 million will be used to acquire land, build, equip, renovate, add on, improve, and expand existing facilities and one or more new buildings. The $30 million balance would be used to acquire land, build, modify, renovate and install additions to Johnston County Community College.
Also authorized was a request from Johnston County for $30 million in limited obligation bonds. The proceeds will finance construction of a 24-classroom addition to Cleveland High School. The money also will cover a portion of the construction of a 67,000-square-foot building in the county to house an Advanced Manufacturing Training Center. The facility will be owned and operated by Johnston Community College. The aim of the center is to attract new industries to the county with workforce development space and training programs.
The LGC voted in favor of a request from Cape Fear Public Utility Authority (New Hanover County) for $100 million in revenue bonds for water and sewer capital projects, and to refund a 2014 bond for debt service savings. Proceeds will pay for work at multiple pump stations and for new equipment. Combined rate increases are expected to be between 6.2% and 7.5%.
LGC members signed off on a $93 million application from the city of Charlotte (Mecklenburg County) to reimburse itself for the purchase of the O-Line and Red Line Gateway Station property. Money will come through a five-year bank agreement. Legislation pending in the General Assembly would authorize the county to hold a referendum to impose a one-cent sales tax increase to help pay for transportation needs.
Harnett County received the go-ahead for $86.5 million in limited obligation bonds to build Flatwoods Middle School. The 154,000-square-foot building will accommodate 1,100 students. A new school is necessary to relieve overcrowding at other middle schools as county population continues growing. There are now 19,947 students in the county. No tax increase is anticipated.
Buncombe County received approval to issue $60 million in limited obligation bonds to refund/refinance a 2015 bond series. Estimated net savings from the action are $4.4 million. The financing also will provide the county with near-term cash flow while managing Hurricane Helene impacts.
LGC members voted in favor of a $37 million request from the N.C. Medical Care Commission to issue conduit revenue bonds that will allow it to loan the proceeds to Lutheran Retirement Ministries of Alamance County. The money would be used to help pay for the acquisition, construction, equipping, improving and expansion of the existing Twin Lakes Community in Burlington, which has assisted living, skilled nursing and independent living units and beds.
Inlivian (Mecklenburg County) got the OK for a pair of conduit revenue bonds. The housing authority will loan proceeds from a $28.4 million bond to Central at Old Concord, an Indiana limited partnership, to acquire, build and equip a 200-unit low- and moderate-income multifamily rental housing development on North Tryon Street in Charlotte.
In addition, Inlivian will loan proceeds of a $22 million bond to BRAD Barton South to acquire, build and equip a 140-unit low- and moderate-income multifamily housing development. Barton South will be located on Pineville Road in Charlotte.
LGC members gave the thumbs up to an application from Elizabeth City (Pasquotank County) to issue $22 million in conduit revenue bonds for loan to TTG Walker Landing Limited Partnership. The North Carolina firm will acquire, rehabilitate and equip a 155-unit multifamily residential rental facility known as Walker Landing. The project will use low-income housing tax credits and provide low- and moderate-income housing.
Rockingham County received an affirmative vote for a $12.5 million installment purchase that allows it to make payments over time instead of all up front. The money will be used at various schools in the Rockingham County Schools system. Aging roofs will be renovated and old HVAC systems replaced.
Perquimans County will build a 158,000-square-foot intermediate school on an 80-acre tract in Winfall, after receiving the LGC’s blessing to pursue an $11 million installment purchase. The new school will serve between 900 and 950 elementary and middle school students. There are currently 796 students attending Hertford Grammar School and Perquimans Middle School. Ground was broken last October, and a May 2026 opening is projected. The school district received a $36.9 million Needs-Based Public School Capital Fund grant from the N.C. Department of Public Instruction to help pay for the school.
Other items on the agenda that gathered approval were:
Dunn (Harnett County), $8.6 million USDA revenue bonds to install a 2.5 million-gallon storage tank and suction lift pump station at the Eastside Pump Station, rehabilitate sewer lines and manholes, among other upgrades.
High Point (Guilford, Randolph, Davidson and Forsyth counties), $6.8 million in limited obligation bonds to reimburse the city for renovation costs to Truist Point stadium, including a new turf field, seating upgrades and new scoreboards.
Lillington (Harnett County), $5 million installment purchase to acquire, build and equip an 8,457-square-foot fire station near the intersection of N.C. Highway 210 and Tripp Road.
Nags Head (Dare County), $3 million installment purchase to acquire vacant property for a future fire station and seasonal rental housing for lifeguards.
Belmont (Gaston County), $780,000 installment purchase to build, install and furnish lighting systems at Davis Park baseball field and tennis court, Rodden Park and Lower Reid Park baseball fields.
LGC members discussed a request from community members in Bethlehem (Alexander County) related to their efforts to incorporate their community, but took no action. State law requires that a petition filed with the Municipal Incorporations Subcommittee of the Joint Legislative Committee on Local Government includes “a statement from the Local Government Commission regarding the proposed municipality's prospects for financial viability and effective fiscal management.” Deputy Treasurer Debbie Tomasko, who was attending her last meeting before retiring as LGC Secretary, provided background on the request and the LGC’s limited role in the incorporation process.