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Bond Resolutions for 2025A 2/3rds General Obligation Bonds and 2025B General Obligation Bonds
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INFORMATION CONTACT:
Beverly Liles, Finance, Director, 704-283-3675
ACTION REQUESTED:
1) Adopt Resolution of the Board of Commissioners of the County of Union, North Carolina Providing for the Issuance of Not to Exceed $13,000,000 County of Union, North Carolina General Obligation Public Facility Bonds; and 2) adopt Resolution of the Board of Commissioners of the County of Union, North Carolina Providing for the Issuance of Not to Exceed $72,150,000 County of Union, North Carolina General Obligation Public Improvement Bonds.
PRIOR BOARD ACTIONS:
2025A - 2/3rds General Obligation Bonds
1) July 15, 2024, Regular Meeting, Agenda Item # 24-417 - Adopted Amended Capital Project Ordinance 349B to approve 2/3rds general obligation bonds as a funding source for the Judicial and Government Center renovation project.
2) July 17, 2024, Regular Meeting, Agenda Item # 23-400 - Adopted Capital Project Ordinance 349 to approve the Judicial and Government Center renovation project for funding design.
3) May 5, 2025, Regular Meeting, Agenda Item #25-227 - Introduced Bond Order, Adopted Resolution Making Certain Statements of Facts and approved for the Clerk to call for Public Hearing on the proposed bonds for May 19, 2025.
4) May 19, 2025, Regular Meeting, Agenda Item #25-284 - Adopted Bond Order in the amount of $13,000,000 to provide funding for the acquisition, renovation and expansion of public facilities, including, but not limited to, the County Judicial Center and Government Center
5) May 19, 2025, Regular Meeting, Public Hearing, Agenda Item 25-283, Held Public Hearing for 2/3rds General Obligation Bond Issuance.
2025B - Voter Approved General Obligation Bonds (last previous actions)
1) December 5, 2022, Regular Meeting, Agenda Item 22-821, Adopted Resolution Certifying and Declaring the Results of the Special Bond Referendum on the Bond Orders Authorizing the Issuance of General Obligation Bonds Held for the County of Union, North Carolina on November 8, 2022, and adopted Capital Project Ordinances 321 and 322.
2) December 2, 2024, Regular Meeting, Agenda Item 24-801, Adopted Resolution Certifying Results of the 2024 Union County General Obligation Referendum that were approved by voters on November 5, 2024, and adopted Capital Project Ordinance 378.
BACKGROUND:
The adopted County’s Capital Improvement Plan for FY 2025 includes the need to issue two-thirds (2/3rds) General Obligation Bonds in the amount of $13,000,000 to provide funding for the acquisition, renovation and expansion of public facilities, including, but not limited to, the County Judicial Center and Government Center.
On the November 8, 2022 election voters approved the authorization to issue $32,725,000 of general obligation bonds plus interest to provide funding for constructing, renovation, improvement, equipment and furnishing of facilities for South Piedmont Community College and the acquisition of land or rights-of-way, if necessary, and providing that additional taxes may be levied in an amount sufficient to pay the principal and interest on the bonds.
On the November 5, 2024 election voters approved the authorization to issue $39,425,000 of bonds plus interest providing for the design, construction and renovation of facilities for Union County Public Schools, including, but not limited to, the design of a new high school to be known as Parkwood High School and the design and renovation of converting the current Forest Hills High School into a middle school to be known as East Union Middle School, the acquisition of equipment and furnishings therefor and the acquisition of land or rights-of-way, if necessary, and providing that additional taxes may be levied in an amount sufficient to pay the principal of and interest on the bonds.
FINANCIAL IMPACT:
For 2025A 2/3rds GO Bonds, debt service expenditures will be included in the County Manager’s proposed budget for payments starting in FY2026. Debt service payments are anticipated to be covered by the current ad valorem taxes in the County’s General Debt Fund. The maximum debt service payment is estimated to be $1,283,750 beginning in FY2026 and commencing in FY 2046.
For 2025B GO Bonds, debt service expenditures will be included in the County Manager’s proposed budget for payments starting in FY2026. Debt service payments will require an ad valorem tax rate increase of 1.82 cents in the Education Debt Fund. The maximum debt service payment is estimated to be $6,924,840, beginning in FY2026 and commencing in FY 2046.