Chapel Hill residents could vote in November on whether to approve $40 million in bond financing to fund some of the town’s high-priority projects.
At Monday night’s town council meeting, Ken Pennoyer, business management director for Chapel Hill, said the town’s high-priority capital projects over the next ten years include building a new police headquarters and replacing fire stations for a combined cost of $30 million. Town officials also want to spend $6 million in stormwater improvements and replace 40 aging buses, which will cost $21 million.
Pennoyer proposed using $50 million of “installment financing” to fund some of these projects (including the police and fire buildings and the new buses). For example, Chapel Hill could borrow money from a local bank to pay for some buses, and pay off the debt in installments over a number of years. This doesn’t require a referendum.
“The main difference between the two is the security,” said Pennoyer. “General obligation bonds are backed by the full faith and credit of the town. Installment financings are backed by an asset, one that’s considered essential to the town’s function.”
The town may finance the projects using both methods, but Mayor Mark Kleinschmidt said the council should advocate for bond financing. If approved, he said, it could save residents money.
Pennoyer said each of the suggested bond orders would be a separate vote. Those votes would be on financing the following projects:
- streets and sidewalks
- trails and green-ways
- recreational facilities
- solid waste facility
- stormwater improvements
On March 23 at Chapel Hill Town Hall, the town council will finalize a referendum plan. That meeting is at 7pm.
Chapel Hill officials are scheduled to work out details of the bond funding over the next couple of months and hold a public hearing in June.
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