TO: Mayor and Members of City Council
THRU: Jeffrey Yates, ICMA-CM, Assistant City Manager
FROM: Tiffany R. Murray, MBA, CLGFO - Chief Financial Officer
Charles Phillip Anthony B. Brioso - Financial Operations Manager
DATE: September 28, 2026
RE:Title
Receive the financial advisor’s update and adopt the preliminary findings resolution authorizing the filing of an application with the North Carolina Local Government Commission for the proposed limited obligation bond financing in an aggregate principal amount not to exceed $28,500,000. Title
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 1: Develop a comprehensive approach to community safety
Goal 5: Increase Parks and Recreation opportunities for youth engagement and interaction
Executive Summary:
City Council will receive an update from the City’s financial advisor regarding the proposed issuance of limited obligation bonds in an aggregate principal amount not to exceed $28,500,000. Following the update, Council will consider adoption of a preliminary findings resolution authorizing the filing of an application with the North Carolina Local Government Commission for approval of the proposed financing.
The proposed financing will provide funds, together with any other available funds, to: (1) finance the acquisition, construction and equipping of the McArthur Road Sports Complex; (2) reimburse the City and/or finance the costs of acquiring certain fire apparatus, consisting of two fire engines, one heavy rescue vehicle, two aerial ladder trucks and one pumper truck; and (3) pay related financing costs.
Current project estimates are approximately $18.5 million for the McArthur Road Sports Complex and $8 million for the fire apparatus. The final financing amount will be based on actual project costs, available City funds and issuance expenses, but will not exceed $28.5 million.
Background:
On June 22, 2026, City Council adopted the Fiscal Year 2026-2027 Budget Ordinance, Fee schedule, and Capital Improvement Program (CIP) Funds. The CIP is directly aligned with the City Council’s recently recommended Strategic Priorities and serves as the primary mechanism for advancing those priorities over time. The FY2027 Adopted CIP includes financing for (a) the acquisition, construction and equipping of the McArthur Road Sports Complex, consisting of baseball and softball fields, a multi-use building, an open-air pavilion, a maintenance facility, a playground and a splash pad, on land located between Interstate 295 and Lake Mont Court; and (b) the reimbursement of the City and/or financing of the costs of acquiring certain fire apparatus, consisting of two (2) fire engines, a heavy rescue vehicle, two (2) aerial ladder trucks, and a pumper truck.
Actual bond principal will be the amount necessary to provide sufficient funds, together with any other available funds, to finance (a) the acquisition, construction and equipping of the McArthur Road Sports Complex, consisting of baseball and softball fields, a multi-use building, an open-air pavilion, a maintenance facility, a playground and a splash pad, on land located between Interstate 295 and Lake Mont Court; and (b) the reimbursement of the City and/or financing of the costs of acquiring certain fire apparatus, consisting of two (2) fire engines, a heavy rescue vehicle, two (2) aerial ladder trucks, and a pumper truck and (c) the fees and expenses incurred in connection with the sale and issuance of the bonds. The principal amount will not exceed $28,500,000.
Adoption of the preliminary findings resolution will authorize the filing of an application with the North Carolina Local Government Commission and request approval of the proposed financing. It will also authorize City staff to continue working with the City’s bond counsel, financial advisor, underwriter, trustee and other professionals necessary to complete the transaction.
The preliminary findings resolution does not authorize the final sale or issuance of the bonds or approve the final financing documents. City Council will consider a separate final approving resolution and related financing documents at a subsequent meeting.
Issues/Analysis:
A portion of the McArthur Road Sports Complex and FY2027 Fire Apparatus Replacement project costs has been paid from City reserves. Subject to compliance with applicable federal tax requirements, proceeds of the proposed financing may be used to reimburse the City for eligible project expenditures. Combining the projects into one financing transaction is expected to create efficiencies and reduce overall issuance costs.
The financial advisor will present an update regarding the proposed structure, financing schedule, market conditions and anticipated debt-service requirements.
Budget Impact:
City Council has previously approved the applicable capital project ordinances or provided preliminary direction regarding funding for the McArthur Road Sports Complex and Fire Apparatus Replacement projects.
The proposed financing is expected to provide the primary source of funding for both projects, together with any other available City funds. The preliminary debt-service structure anticipates that scheduled principal and interest payments will begin in FY2028. Based on the current financing schedule, no FY2027 budget amendment for debt service is anticipated.
Options:
1) Receive the financial advisor’s update and adopt the preliminary findings resolution authorizing the filing of an application with the North Carolina Local Government Commission for the proposed limited obligation bond financing in an aggregate principal amount not to exceed $28,500,000.
2) Do not adopt the resolution and provide direction to staff.
Recommended Action::Recommended Action
Staff recommends that City Council receive the financial advisor’s update and adopt the preliminary findings resolution as presented.
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Attachments:
Financing Calendar
Preliminary Resolution