TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA-CM, City Manager
Jeffery Yates, ICMA-CM, Assistant City Manager
FROM: Tiffany Murray, Chief Financial Officer
Charles Brioso, Financial Operations Manager
DATE: October 26, 2026
RE:Title
Resolution Approving and Authorizing the Sale and Issuance of Limited Obligation Bonds and the Execution and Delivery of a First Amendment to Master Trust Agreement, a Third Supplemental Trust Agreement, and Related Documents in Connection with the Acquisition, Construction and Equipping of the McArthur Park Sports Complex and the Financing and Reimbursement of the Fire Apparatusle
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 1: Safe and Secure Community, Objective 1.1: To fully prepare for emergency and disaster response
GOAL IV: The City of Fayetteville will be a desirable place to live, work and recreate.
GOAL V: The City of Fayetteville will be a financially sound city providing exemplary city services.
The proposed financing supports the City’s priorities for comprehensive community safety and expanded parks and recreation opportunities for youth engagement. Fire apparatus investments support emergency response, while the McArthur Road Sports Complex would provide additional recreation facilities and opportunities for residents.
Supports strong financial management, fiduciary accountability, and long-term resource sustainability by aligning capital financing with the City’s recreation and public safety priorities.
Executive Summary:
fiduciary accountability, and long-term resource sustainability by aligning capital financing with the City’s recreation and public safety priorities.
Executive Summary:
City Council is asked to adopt the attached resolution approving and authorizing the sale and issuance of Limited Obligation Bonds, Series 2026, in an aggregate principal amount not to exceed $28,500,000 to finance the McArthur Road Sports Complex, finance and reimburse costs associated with replacement fire apparatus, and pay expenses associated with issuing the bonds.
The resolution also approves the execution and delivery of a First Amendment to the existing Master Trust Agreement, a Third Supplemental Trust Agreement, and related financing documents, and authorizes designated City officials to complete the transaction within the parameters established by the resolution.
Background:
On October 12, 2026, City Council held a public hearing on the proposed limited obligation bond financing for the McArthur Road Sports Complex and replacement fire apparatus. The financing documents are now presented for Council’s approval.
The financing will support construction and equipping of the sports complex on approximately 70 acres leased from the United States of America at Fort Bragg, and the acquisition of six replacement fire apparatus, including reimbursement of eligible costs previously paid by the City.
The bonds will be issued under the existing June 1, 2018 Master Trust Agreement through a First Amendment and a Third Supplemental Trust Agreement. The amendment expands eligible projects to include parks and recreation facilities, vehicles, and equipment. The City’s obligations will be secured on a parity with existing bonds by the deed of trust covering the baseball stadium property and related improvements. No lien will be placed on the sports complex or its land.
Bond principal will not exceed $28,500,000. Final borrowing amounts, interest rates, and repayment terms will be determined at pricing within the parameters established by the approving resolution.
Adoption of the resolution approves the financing documents in substantially the forms presented, authorizes distribution of the preliminary official statement, and authorizes designated City officials to complete the transaction, subject to required approvals. The current schedule anticipates Local Government Commission consideration on November 3, pricing on November 12, and closing on December 3, 2026.
Issues/Analysis:
The proposed financing will provide approximately $18 million for the McArthur Road Sports Complex and $8 million for replacement fire apparatus, plus issuance costs. Debt service is proposed over 20 years for both components, with payments beginning in FY2028. Bond principal will not exceed $26.5 million. Final borrowing amounts, interest rates, and annual debt service will be determined at pricing.
Budget Impact:
No debt service payments are anticipated in FY2027. Principal and interest payments are expected to begin in FY2028 and will be supported by dedicated property tax revenues, as presented at the October 12 public hearing.
The proposed repayment periods presented at the public hearing are 20 years for the McArthur Road Sports Complex and 10 years for fire apparatus.
Future debt service appropriations will be incorporated into the City’s annual budget and capital financing plan.
Options:
1. Adopt the resolution approving and authorizing the sale and issuance of Limited Obligation Bonds, Series 2026, and the execution and delivery of a First Amendment to Master Trust Agreement, a Third Supplemental Trust Agreement, and related documents in connection with financing the McArthur Road Sports Complex and financing and reimbursing fire apparatus costs.
2. Do not adopt the resolution and provide direction to staff.
Recommended Action::Recommended Action
Adopt the resolution approving and authorizing the sale and issuance of Limited Obligation Bonds, Series 2026, in an aggregate principal amount not to exceed $28,500,000, and the execution and delivery of a First Amendment to Master Trust Agreement, a Third Supplemental Trust Agreement, and related documents in connection with financing the McArthur Road Sports Complex and financing and reimbursing fire apparatus costsend
Attachments:
1. Approving Resolution
2. Draft First Amendment to Master Trust Agreement
3. Draft Third Supplemental Trust Agreement