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: October 12, 2026
RE:Title
Conduct a Public Hearing to consider the issuance of limited obligation bonds not to exceed $28,500,000 for the purpose of providing funds for the McArthur Road Sports Complex and Fire ApparatusTitle
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
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.
Executive Summary:
The proposed limited obligation bond financing provides up to $28.5 million for the McArthur Road Sports Complex, fire apparatus, and related financing costs. Current estimates are approximately $18.5 million for the sports complex and $8 million for fire apparatus; the final borrowing amount would reflect actual costs, available City funds, and financing expenses.
The proposed financing would use the existing property pledged under the City’s June 1, 2018, Deed of Trust. The City may also pledge some or all of the fire apparatus. No lien or security interest would be granted in the sports complex or its federally owned leased land.
The October 12 public hearing is to receive public comment before Council considers the findings and determinations and authorization of the Local Government Commission application.
Final Council approval of the financing agreements is scheduled for October 26, 2026.
Background:
The proposed financing under N.C.G.S. § 160A-20 provides funds for: (a) the acquisition, construction, and equipping of certain parks and recreation facilities, including the McArthur Road Sports Complex, consisting of up to twelve baseball and softball fields, a multi-use building with restrooms, concessions, and office space, an open-air pavilion, a maintenance facility, a playground, a splash pad, and related roadway, parking, and site improvements, located on approximately 70 acres leased to the City by the United States of America at Fort Bragg, North Carolina; (b) reimbursement of the City and/or financing of the costs of acquiring two fire engines, a heavy rescue vehicle, two aerial ladder trucks, and a pumper truck; and (c) payment of related financing fees and expenses.
Limited obligation bonds are a form of borrowing secured by specified property under financing agreements. The City proposes a Third Supplemental Trust Agreement with U.S. Bank Trust Company, National Association, as successor in interest to U.S. Bank National Association, as trustee, supplementing the Master Trust Agreement dated as of June 1, 2018. A First Amendment broadens the definition of eligible Additional Projects to include vehicles, fire apparatus and other equipment, parks and recreation facilities, and other real and personal property. Bonds may be issued in one or more series, as tax-exempt or taxable obligations, with aggregate principal not exceeding $28,500,000.
The City’s obligations under the proposed Trust Agreement are secured, on a parity with its outstanding limited obligation bonds, by the existing Deed of Trust dated June 1, 2018, which grants a lien on the site described in Schedule I of that Deed of Trust, together with all improvements and fixtures located or to be located thereon, subject to permitted encumbrances. The City may also grant a security interest in some or all of the fire apparatus. No lien or security interest would be granted in the Sports Complex or the land on which it is located.
The proposed resolution declares the City’s intent to reimburse eligible capital expenditures in accordance with Section 1.150-2 of the Treasury Regulations and supplements the August 11, 2025, reimbursement resolution for fire apparatus. Reimbursement remains subject to applicable expenditure eligibility and timing requirements. The resolution also authorizes the retention of bond counsel, a municipal advisor, an underwriter, a trustee, and other necessary financing professionals.
N.C.G.S. § 160A-20 requires a public hearing before the City enters into the proposed financing agreement. Following the hearing, Council may adopt the resolution, make findings and determinations, and authorize, ratify, and approve the Local Government Commission (LGC) application.
The findings address the need for and suitability of the financing, the reasonableness of the amounts payable, the lawful public purpose, the City’s debt management practices, and the expectation that no property tax rate increase will be needed. The LGC application requests approval of the bonds, the Third Supplemental Trust Agreement, the First Amendment, and related financing.
Issues/Analysis:
Combining the projects into a single financing transaction is expected to reduce duplication and improve issuance cost efficiency. Eligible expenditures previously paid from City resources may be reimbursed from bond proceeds, subject to applicable requirements.
The preliminary schedule anticipates rating calls during the week of October 19, final Council approval on October 26, LGC approval on November 3, bond pricing on November 12, and closing on December 3, 2026. These dates are subject to completion of required approvals, notices, and financing documents.
Budget Impact:
The proposed borrowing would provide the primary financing for the projects, together with other available City funds. It creates future principal and interest obligations and is not revenue available without repayment. Scheduled debt service is currently anticipated to begin in FY2028, and no FY2027 debt-service budget amendment is expected under the preliminary structure.
Annual debt service has been incorporated into the City’s debt planning for the Council-adopted Capital Improvement Plan.
Options:
1. Following the public hearing, adopt the resolution making the findings and determinations, authorize, ratify, and approve the LGC application, and request LGC approval of the proposed bonds and financing agreements.
2. Following the public hearing, do not adopt the resolution at this time and provide further direction to staff regarding the financing plan or proposed findings.
Recommended Action::Recommended Action
Conduct the public hearing. Following the hearing, staff recommend that City Council adopt the resolution making the findings and determinations for the proposed financing and authorizing the related LGC application and implementation actions.
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Attachments:
City Council Proceedings - Preliminary Resolution
Limited Obligation Bonds Financing Calendar