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2007
David
M. Lawrence and A. John Vogt
32 pages
ISBN 978-1-56011-514-4 (PDF version)
Price: $15.00
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Below you will find updated information
to Article 17, “Capital Planning, Budgeting, and Debt Financing" from County and Municipal
Government in North Carolina, the complete
reference book on North Carolina county and municipal
government that provides a comprehensive treatment
of the legal foundations, organization, and the
administration of the state's counties and cities.
This page will provide updates that have occurred
since the article was originally published in
July 2007. When substantial updates are made to
the article, the entire article will be updated
and posted to the County
and Municipal Government web site.
Article 17: Capital Planning, Budgeting, and Debt Financing, 2009
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Articles from County and Municipal
Government in North Carolina may be purchased
and downloaded for personal use by an individual
but may not be reproduced or redistributed in
quantities greater than "fair use" permits under
copyright law without the express written permission
of the School of Government. You may order individual
articles in PDF format; the complete set in loose-leaf
format, or on CD-ROM; or see a view-only PDF (you
may view this type of file on your computer and
save it for future viewing, but you will not be
able to print it) by going to the County
and Municipal Government web site.
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April 2009 Update
During the 2008 legislative session the General Assembly temporarily authorized a new form of security as collateral for revenue bonds—a pledge of the revenue generated from special assessments on properties that directly benefit from the debt-financed project. The authority comes as part of a new economic development tool for local governments to fund certain infrastructure projects to attract and secure private development. Articles 9A and 10A of G.S. 153A and G.S. 160A, respectively, authorize counties and cities to make special assessments against benefitted property to fund the capital costs of the following projects:
- sanitary sewer systems
- storm sewers and flood control facilities
- water systems
- public transportation facilities
- school facilities
- streets and sidewalks
The projects must be financed solely from revenue bonds or from a combination of financing sources that include revenue bonds. Examples of other financing sources are general obligation bonds and unrestricted general fund revenues. The borrowings are governed by the State and Local Government Revenue Bond Act (Article 5 of G.S. 159).Before a local unit imposes a special assessment, it must receive a petition for the project to be financed by the assessment that is signed by a majority of the owners of real property to be assessed who also represent at least 66 percent of the assessed value of all real property to be assessed. The governing board then must select a basis upon which to make the assessment that accurately assesses each lot or parcel of land according to the benefits conferred upon it by the project and follow a series of procedural requirements for adopting and confirming an assessment resolution and an assessment roll based on the estimated costs of the project being financed. The special assessment may be imposed before the costs of the project are incurred by the unit, based on the governing board’s cost estimates. The assessments may be paid in up to thirty annual installments, if so authorized by the governing board.
The authority to make special assessments on the listed projects and to fund those projects, at least partially, with revenue bonds currently expires on July 1, 2013. The expiration date will not affect the validity of any existing assessments as of that date or any revenue bonds issued prior to that date.
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