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:
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.
CHAPEL HILL- Both Orange County Schools and Chapel Hill-Carrboro City Schools are facing multi-million dollar repairs to fix up aging facilities, but Orange County Commissioners worry there’s not enough time to put together a $100 million dollar bond package before a September deadline to get it on the ballot for the General Election.
“I’m a little concerned that if we shoot for 2014 we’re not going to do a very good job of getting everything in place and take a chance that it will not pass,” said Board Vice-Chair Earl McKee.
He and fellow board members are also wary of taking up bond planning while the county is in the process of searching for a new manager, a search that’s taking longer than expected.
At a work session on Tuesday, commissioners expressed little interest in pushing to meet the deadline for a ballot measure this year, instead eyeing the timing of future referendums.
But some, including Mark Dorosin, worry rural residents would be disenfranchised if the county-wide bond went to the voters in 2015, when only municipal races are on the ballot.
“If you look back at the turnout for an “off” year versus an “on” year mid-term election, there’s more than 25 percent greater turnout,” said Dorosin.
Instead, commissioners said they’d consider May 2016, when turnout is expected to be high for the presidential and gubernatorial primaries, though the board did not rule out the possibility of putting the measure up for a vote next year.
Commissioners say they want input from staff on the timing and process of crafting a bond package, as well as more information from both school systems about what projects are top priorities.
The last bond referendum in 2001 netted the county an additional $75 million for school, parks, senior centers and housing. The proposed $100 million dollar bond would be the county’s largest in recent history. But even that would be a drop in the bucket, as the school districts’ combined list of repairs is estimated to be more than the county’s entire $192 million dollar annual operating budget.
Board Chair Barry Jacobs said voters should know the upcoming bond referendum could be the first of several.
“The needs are too big for one bond cycle, so we say that we’re going to have several bonds over a period of time to address several hundred million dollars worth of school needs for both systems,” said Jacobs.
The board will discuss creating a possible bond planning task force in the near future.
Meanwhile, the Chapel Hill Town Council is eyeing its own $20 million dollar bond package to replace or upgrade aging facilities. That measure could potentially go on the ballot in 2017.http://chapelboro.com/news/local-government/orange-bocc-backs-2014-bond-referendum/
Council members agreed on the need for more affordable housing, new youth initiatives, a sustainable funding model for Chapel Hill Transit and a long-term solid waste solution.
Mayor Mark Kleinschmidt said within 18 months the Council will be ready to decide what to do with the town’s trash.
“The staff really wants this decision made,” said Kleinschmidt. “There are on-going conversations with Orange County, with Carrboro and with the City of Durham about how we can cooperate. Now, maybe all those jurisdictions don’t come together, but there’s some secret match of jurisdictions that can come together to provide those solutions. We don’t know what that’s going to be yet.”
Currently the town pays to haul trash to Durham since the Orange County landfill has closed, but staffers say the town should explore the possibility of building and operating a waste transfer station on town-owned land, a project that could cost $5.1 million.
One of the biggest challenges facing the town is the need to replace or upgrade town facilities and infrastructure.
Business Management Director Ken Pennoyer laid out more than $100 million dollars in capital needs to be financed over the next two decades, including a new police station, four fire stations and completion of the parks master plan.
“We have a fairly significant wish list and needs list of projects that we need to accomplish within the next twenty years, so balancing that is a difficult challenge,” said Pennoyer.
The Council will consider planning for a $20 million bond referendum to go on the ballot in 2017.
In addition, Council members discussed the need for increased economic development, enhanced code enforcement and a town-wide stormwater master plan.
The new policy goals will guide the Town Manager as he crafts next year’s spending plan. Budget negotiations will begin later this spring.http://chapelboro.com/news/local-government/chtc-sets-priorities-2014-beyond/
HILLSBOROUGH- Orange County Commissioners on Tuesday signaled they may be willing to shift the focus of a proposed $100 million bond referendum.
In a prior discussion, the board talked about getting voter approval to finance a new jail, and a fifth middle school for the Chapel Hill-Carrboro City Schools system. Those two projects alone total $73 million.
But school board members from both the Chapel Hill-Carrboro and Orange County districts say aging schools are badly in need of repair, and fixing those could cost as much as $230 million.
Commissioner Mark Dorosin said he’d like some guarantee from district officials that renovating older schools would increase student capacity, delaying the need for new buildings.
“I think if we’re going to put any money into the renovation of these older schools, which is much needed, I think we should demand that any renovation increase capacity, whether it’s in the middle school or the elementary school,” said Dorosin. “Whatever those plans are, that money should have as an additional benefit that it is going to push out the next elementary school, the next middle school, the next high school, whatever it is.”
If voters approve a $100 million dollar bond package, Assistant County Manager Clarence Grier told the board that could mean raising the tax rate by 4.18 cents for the next 20 years to cover the $6.7 million annual debt payments.
In order to get the referendum on the ballot for the November 2014 election, the school boards and commissioners must come up with a list of priorities by early June.
Chapel Hill-Carrboro administrators have already completed a detailed assessment of the district’s older buildings, while Orange County school officials have a study underway. County Commissioners will discuss the timing of the possible bond package at a meeting later this fall.http://chapelboro.com/news/local-government/bocc-eyes-older-schools-for-bond-referendum/