Rowan, Macon Counties Win Approval for New Schools Construction Financing

Local Government Commission Acts on Many Public Buildings, Infrastructure Requests

Raleigh, NC

Sep 11, 2024

Construction of a new school and other school-related capital projects received a significant push forward when the Local Government Commission (LGC) approved a $73 million financing request from Rowan County.

That was one item on the agenda among numerous applications statewide that the LGC approved at its monthly meeting on Tuesday, Sept. 10. All told, those projects total more than $335 million in financing.

The LGC is chaired by State Treasurer Dale R. Folwell, CPA, and staffed by the Department of State Treasurer (DST). It 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.

Rowan County officials say the $73 million in limited obligation bonds are necessary to repair and replace aging school facilities in the Rowan-Salisbury School System and Kannapolis City Schools. A limited obligation bond does not require voter approval. The county intends to pay the debt with general fund money, and no tax increase is anticipated.

Part of the money will be used to build and equip a new school on Park Road West in Salisbury to serve grades 3-8. Other portions will go towards building a 31,000-square-foot, 15-classroom, two-story addition that also will house a media center, STEM classroom and teacher offices at Fred L. Wilson Elementary School in Kannapolis. A number of roof projects at various schools also will be conducted in the Rowan-Salisbury School System.

Macon County won approval of $69 million in financing for construction of a new high school. Similarly, Macon County will pay off its limited obligation bonds through general fund revenues. Officials say the existing Franklin High School has safety issues and compliance deficiencies with the Americans With Disabilities Act that make it necessary to replace it with a new high school. The proposed project will be built on a 28-acre parcel, accommodate 1,400 students and cost over $100 million. The county got a boost from a separate $62 million state needs-based capital fund grant.

The Onslow Water and Sewer Authority (Onslow County) successfully asked the LGC to sign off on $35 million in revenue bonds to pay for a new 36,000-foot, 18-inch sewer main and construction of two associated pump stations. Officials say that work, and rehabilitation of two existing pump stations, is necessary to connect Swansboro and Piney Green sewage systems. The project also makes growth opportunities possible in an area currently untreated by sewer. The authority expects rate increases will be necessary.

The LGC gave a green light to the N.C. Medical Care Commission's application for $35 million in conduit revenue bonds, a type of financing that allows the proceeds to be loaned to a third party. EveryAge (formerly United Church Homes and Service) will use the proceeds to purchase skilled nursing and assisted living portions of a retirement community known as Providence Place in High Point (Forsyth County).

Lee County will use $28 million in limited obligation bonds to build and equip a new 33,000-square-foot library in O.T. Sloan Park. The LGC approved its request, which allows some proceeds to pay for purchase of new communications equipment for use by volunteer fire departments, Emergency Medical Services and the town of Broadway.

LGC members OK'd a request from Chapel Hill (Orange County) for a $27 million, 15-year lease for a building to house the Police Department, Emergency Operations Center, and Technology Solutions team. The existing police facility is old and in need of significant repair. It sits atop a coal ash disposal site for which the town is determining cleanup costs. A tax increase is expected to cover costs.

The Raleigh Housing Authority (Wake County) secured the LGC's stamp of approval for $21 million in conduit revenue bonds. Proceeds will be loaned to BRAD Parkside Apartments, a North Carolina limited liability company, to acquire, build and equip a 144-unit low- and moderate-income multifamily rental housing development. Parkside Apartments will be located on Kent Road.

LGC members gave the go-ahead to Onslow County to issue $16 million in limited obligation bonds to help pay the costs of renovating and expanding Northwoods Park Middle School in Jacksonville. The building will expand from 88,863 square feet to 106,992 square feet. Up to 656 students will be served, and construction is expected to be completed by April 2025. No tax increase is anticipated.

Morehead City (Carteret County) obtained LGC authorization for a $4.9 million installment purchase to partially pay for a new fire station. The Fire Department and EMS Department are currently working out of a temporary trailer since the fire station was damaged during Hurricane Florence in September 2019.

Reidsville (Rockingham County) was cleared to seek $4.9 million in financing through a State Revolving Loan. It plans to use the money to provide a backup power source that could operate the water treatment plant in an emergency. A rate increase is anticipated.

The LGC gave a thumbs up to the town of Morrisville (Wake County) for a $4.5 million long-term lease for a portion of a parking deck as part of a public-private partnership development agreement. The goal is to create a Town Center project encompassing 25 acres of mixed-use development and public space.

Additional funding request applications were approved for:

• Morehead City (Carteret County), $1.8 million installment purchase for a Fire Department ladder truck.
• Lincolnton (Lincoln County), $1.6 million State Revolving Loan to rehabilitate parts of the water treatment plant.
• Vance County, $1.6 million U.S. Department of Agriculture revenue bonds to install 23.6 miles of water main lines to extend service to Kittrell Township for about 210 new connections, and to refurbish Kittrell's 100,000-gallon elevated water tank.
• Rural Hall (Forsyth County), a $1.5 million installment purchase to go towards construction of a new 15,103-square-foot fire station to replace an aging structure.
• Wake Forest (Wake and Franklin counties), $1.4 million in general obligation bonds to build, improve, expand and equip parks and recreation facilities.
• Tryon (Polk County), an $852,459 installment purchase to finance a fire engine that will replace a 25-year-old vehicle, and $612,355 to rehabilitate and replace sewer pipes.
• Black Mountain (Buncombe County), a $194,000 installment purchase to finance two police vehicles and one administrative vehicle.

Other items approved at Tuesday's meeting include numerous financing resolutions for lead service line inventory projects. The surveys are required under U.S. Environmental Protection Agency and N.C. Department of Environmental Quality regulations. The intent of the inventories is to identify where lead water lines are located in anticipation of replacing them to protect public health. State Revolving Fund loans were approved for:

• Bertie County, $43,500;
• Clinton (Sampson County), $178,688;
• Elizabethtown (Bladen County); $111,568;
• Fayetteville Public Works Commission (Cumberland County), $400,000;
• Henderson (Vance County), $400,000
• Hendersonville (Henderson County), $229,368;
• Iredell Water Corporation (Iredell County), $139,448;
• Jason Water Corporation (Greene County), $6,486;
• Northampton County, $150,000;
• Pine Level (Johnston County), $45,260;
• Princeton (Johnston County), $3,802;
• Sanford (Lee County), $400,000;
• Smithfield (Johnston County), $199,552;
• Valdese (Burke County), $200,000;
• Williamston (Martin County), $24,500;
• Winterville (Pitt County), $165,000.

Press Line

[email protected]

(919) 814-3820