Commissioners seek input on placing $11M in school bonds and $9M in community college bonds on the November ballot
July 11, 2014 — Cabarrus County Board of Commissioners will hold public hearings on the November 2014 General Obligation (GO) bond referendums at its July 21 meeting, 6:30 p.m., at the Cabarrus County Government Center (65 Church St. SE, Concord).
The public hearings are the next step in the process of placing $11 million in school bonds and $9 million in community college bonds on the November ballot. Once commissioners receive public input they will vote on adopting the bond orders and vote on resolutions calling for the bond referendums on the November 4, 2014 ballot. The Board will also need to take action to authorize publication of the bond orders, authorize publication of notices of referendum and adopt reimbursement resolutions for each project.
The GO school bonds consist of up to $11 million 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 million 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. They are secured by the County’s tax rate, which the County pledges to levy in order to provide for the repayment of the debt. Cabarrus County maintains a GO bond rating of “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.
On March 17, 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 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.
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). Following North Carolina general statutes, the 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.