AGENDA #4d
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Establishment of Bond Funds
DATE: November 8, 2004
Enactment of the attached budget ordinances would establish a Streets Bond Fund, a Library Facilities Bond Fund, a Parks and Recreation Facilities Bond Fund and an Open Space Bond Fund.
BACKGROUND AND DISCUSSION
On November 4, 2003, voters approved the issuance of $29.36 million in bonds. On March 30, 2004, the Council approved sale of those bonds in four offerings. The first sale was scheduled for fall of 2004, in the amount of $4 million. On September 27, 2004, the Council formally authorized the sale of $4 million in general obligation bonds and on Tuesday, October 5, we sold the bonds. Six bids were received. Legg Mason Wood Walker was the low bidder with a rate of 4.0092% for bonds maturing over the next twenty years.
The Council authorized the proceeds to be allocated as follows:
The Council earlier decided to allocate funds for Parks and Recreation projects as follows: Dry Creek Trail - $125,000, Bolin Creek Trail - $100,000, and Morgan Creek Trail -$75,000. The Town would also receive $75,000 that the County has agreed to provide for design of the Bolin Creek Trail. For a more detailed description of the projects, see Attachment 4.
A portion of the $1,200,000 proceeds for open space and areas was allocated by the Council in December 2003, for Dry Creek Open Space. We purchased 31.27 acres of property on the east side of Erwin Road and south of I-40 for $1,047,560, or $33,500 per acre. The Town used a portion of 1996 bond proceeds to pay for a portion of the land. A reimbursement resolution was prepared, so that the Town could reimburse itself for the balance of the purchase with these bond funds, approximately $661,000.
Bond issuance costs of approximately $45,000 would be distributed proportionally to all projects. The attached ordinances would authorize the project amounts for the first $4 million issuance of the 2003 voter-approved bonds.
Because of the need to use the Public Buildings Fund as a source of matching grant revenues for the Sustainability Grant approved on March 22, 2004, the Council has already approved the establishment of that fund. The remaining four funds: Streets, Library Facilities, Parks and Recreation Facilities, and Open Space would be established by the attached ordinances.
RECOMENDATION
We recommend that the Council enact the attached ordinances establishing the following bond funds: Streets, Library Facilities, Parks and Recreation Facilities, and Open Space.
ATTACHMENTS
- Memorandum of March 22, 2004 (p. 7).
- Memorandum of March 30, 2004 (p. 8).
- Memorandum of September 27, 2004 (p. 17).
- Description of Proposed Parks and Recreation Bond Projects (p. 24).
AN ORDINANCE ESTABLISHING A CAPITAL PROJECTS ORDINANCE FOR STREETS FUNDED FROM 2003 BONDS (2004-11-08/O-3)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, that the following capital project is hereby established for Street Improvements funded from 2003 bonds approved by the voters in November 2003.
SECTION I
The capital projects as authorized by bond referenda approved in November 2003, and as determined by the Town Council, includes the capital costs of street improvements.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are as follows:
Bond Proceeds $1,500,000
Amounts appropriated are for the project as follows:
Sidewalk Construction $ 600,000
Pedestrian Amenities 100,000
Neighborhood Traffic Calming and
Pedestrian and Bicycle Safety Improvements 300,000
Downtown Streetscape Improvements 500,000
TOTAL $1,500,000
SECTION IV
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.
SECTION V
Copies of this ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Clerk.
This the 8th day of November, 2004.
AN ORDINANCE ESTABLISHING A CAPITAL PROJECTS ORDINANCE FOR LIBRARY FACILITES FUNDED FROM 2003 BONDS (2004-11-08/O-4)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, that the following capital project is hereby established for Street Improvements funded from 2003 bonds approved by the voters in November 2003.
SECTION I
The capital projects as authorized by bond referenda approved in November 2003, and as determined by the Town Council, includes the capital costs of the addition and improvement to library facilities.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are as follows:
Bond Proceeds $500,000
Amounts appropriated are for the project as follows:
Design and Planning Costs $500,000
SECTION IV
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.
SECTION V
Copies of this ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Clerk.
This the 8th day of November, 2004.
AN ORDINANCE ESTABLISHING A CAPITAL PROJECTS ORDINANCE FOR PARKS AND RECREATION FACILITIES FUNDED FROM 2003 BONDS (2004-11-08/O-5)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, that the following capital project is hereby established for Street Improvements funded from 2003 bonds approved by the voters in November 2003.
SECTION I
The capital projects as authorized by bond referenda approved in November 2003, and as determined by the Town Council, includes the capital costs of parks and recreation improvements.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are as follows:
Bond Proceeds $300,000
County Contribution 75,000
Amounts appropriated are for the project as follows:
Dry Creek Trail $125,000
Bolin Creek Trail (Phase 3) 175,000
Morgan Creek Trail 75,000
TOTAL $375,000
SECTION IV
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.
SECTION V
Copies of this ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Clerk.
This the 8th day of November, 2004.
AN ORDINANCE ESTABLISHING A CAPITAL PROJECTS ORDINANCE FOR OPEN SPACE AND AREAS FUNDED FROM 2003 BONDS (2004-11-08/O-6)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, that the following capital project is hereby established for Street Improvements funded from 2003 bonds approved by the voters in November 2003.
SECTION I
The capital projects as authorized by bond referenda approved in November 2003, and as determined by the Town Council, includes the capital costs of open space and areas.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are as follows:
Bond Proceeds $1,200,000
Amounts appropriated are for the project as follows:
Open Space and Areas $1,200,000
SECTION IV
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.
SECTION V
Copies of this ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Clerk.
This the 8th day of November, 2004.