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2024 Union County Public School’s Bond Referendum
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INFORMATION CONTACT:
Beverly Liles, Finance, Finance Director, 704-283-3675
ACTION REQUESTED:
1) Adopt Resolution directing publication of notice of intent to apply to the Local Government Commission for $39,425,000 of general obligation school bonds and 2) adopt Resolution making certain statements of facts concerning the proposed school bond issue and authorizing the application to the Local Government Commission for $39,425,000 of general obligation school bonds.
PRIOR BOARD ACTIONS:
May 6, 2024, Regular Meeting, Agenda Item # 24-290 - The Board authorized staff to move forward with the necessary steps for a 2024 Bond Referendum for Union County Public Schools to fund 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 in the amount of $39,421,448.
BACKGROUND:
The Resolution directing publication of notice of intent to apply to the Local Government Commission (LGC) authorizes the Clerk to the Board to publish in the Enquirer Journal the Notice of Intention to Apply to the LGC for approval of Union County Public School Bonds to be placed on the November 2024 election ballot.
The Resolution making certain statements of facts concerning the proposed school bond issue and authorizing the application to the Local Government Commission presents certain findings of facts regarding the proposed bond issuance, financing, increase in taxes, marketing of bonds, estimated interest and authorizes the Finance Director to file with the LGC an application for approval of General Obligation School Bonds as described in the resolution.
General Obligation Bonds are issued in $5,000 increments; therefore, the bond amount is rounded up to the nearest $5,000 increment compared to the original bond request.
FINANCIAL IMPACT:
The estimated cumulative cost over the life of bond, using the highest interest rate of 5.344% charged for similar debt over the last twenty years is estimated at $61,541,611. The estimated maximum annual debt service impact is $4,077,755 beginning in FY 2026 and commencing in FY 2045. The annual estimated amount of property tax liability increases for each $100,000 of property tax value to service the cumulative cost over the life of the bond is estimated at $8.00. (based on 0.80¢ increase in the ad valorem property tax rate) This estimate is based on the legislative requirements of NC Session Law 2022-53 for bond referendums.