AGENDA #3e

 

BUDGET WORKING PAPER

 

 

TO:                  W. Calvin Horton, Town Manager

 

FROM:               Jim Baker, Finance Director

 

SUBJECT:            Use of 1996 Public Works Bond Proceeds

 

DATE:            May 30, 2001

 

 

The Council requested information on how the proceeds of Public Works bonds authorized in 1996 may be used, and whether any remaining unspent proceeds can be used for land acquisition or improvements to new public works facilities.

 

Based on a review of the bond order adopted by the Council in 1996, the question on the referendum ballot (both shown below), and consultation with bond counsel, it seems clear that proceeds from the 1996 Public Works bonds can be used for acquisition of land for a new Public Works facility or for construction of a new facility.

 

The Bond Order for the Public Works bonds adopted by the Council in 1996 read as follows:

 

            “Section l.  The Town Council of the Town of Chapel Hill, North Carolina has ascertained and hereby determines that it is necessary to acquire, construct, enlarge and renovate public works construction and maintenance facilities including the acquisition of machinery and equipment required therefor and the acquisition of necessary land or rights in land and to pay the capital costs of such improvements.”

 

The question before the voters in the November 5, 1996 referendum regarding public works bonds was as follows:

 

            “SHALL THE ORDER AUTHORIZING $500,000 OF BONDS SECURED BY A PLEDGE OF THE FAITH AND CREDIT OF THE Town of Chapel Hill to pay capital cost of acquiring, constructing, enlarging and renovating public woks construction and maintenance facilities including the acquisition of necessary land or rights in land, and a tax to be levied for the payment thereof, be approved?”