Commissioners move forward on bond referendum providing up to $11M for CCS and $9M for RCCC
June 2, 2014 — At its May 27 Budget Work Session the Cabarrus County Board of Commissioners approved the filing of applications for school and community college bonds with the Local Government Commission (LGC). This is one of many steps in the process of placing the bond referendum on the November ballot for public vote.
The General Obligation (GO) School Bonds consist of up to $11,000,000 to replace the existing Royal Oaks Elementary in northwest Cabarrus County for Cabarrus County Schools District. The GO Community College Bonds provide up to $9,000,000 to construct a new Advanced Technology Center for Rowan-Cabarrus Community College. Both sets of bonds include the acquisition, construction, installation and equipping of the facilities, including the acquisition of necessary land and rights-of-way.
GO bonds are low-interest loans often used by municipalities to finance capital (building and repair) projects that are above-and-beyond the scope of the annual operating budget. Cabarrus County maintains an “Aa1” bond rating by Moody’s Investors Service, “AA+” by Standard & Poor’s and “AA+” by Fitch Ratings, which contribute to keeping interest rates low on money borrowed by the County.
Following North Carolina general statutes, Cabarrus County placed notice of the filing of the applications for school and community college bonds with the LGC in the Independent Tribune on June 1. In the next several months, the Board of Commissioners will hold a public hearing on the bond amount, at which time they may remove items or lower dollar amounts before placing the bond referendum on the November ballot.
Originally, the Board of Commissioners approved a resolution
that included placing three projects on the proposed bond list; the two mentioned above and $23 million for a new middle school for Kannapolis City Schools. The March 17 motion also provided Kannapolis City Schools the option to withdraw its Resolution in Support of Bond Referendum by May 31 in exchange for short-term financing of up to $23 million in FY15.
On May 12, Kannapolis City Schools adopted a resolution to withdraw its request of inclusion on the bond referendum in exchange for the short-term financing option. Short-term financing does not require a bond referendum and vote by residents of Cabarrus County.