Chowan commissioners last week discussed the steps for putting a bond referendum before county voters this fall that, if approved, would finance up to $35 million in recreation improvements.
The April 19 meeting, which covered only the financial aspects of the referendum, provided a first glimpse of the proposal commissioners plan to place on the county ballot in the November general election. The county is considering two possible amounts for a bond referendum: one package for $20 million and another for $35 million.
An analysis by McGuireWoods, a Norfolk, Virginia-base law firm, of Chowan’s financial position indicates the county should be able to take on a $35 million general obligation bond and stay within the N.C. Local Government Commission’s suggested financial ratios. All local governments issuing bonds or entering financing arrangements have to get LGC approval.
McGuireWoods did not indicate a bond rating for Chowan because the county does not currently have any public debt. Since construction work on the county’s $85 million John A. Holmes High School replacement project has not been completed, that bond has not been issued.
That finding cleared the way for further discussion of plans that might be implemented if the voters approve a referendum in November to allow Chowan to borrow money for recreation improvements. Mary Nash Rusher of McGuireWoods reviewed the steps the county would need to go through to issue bonds for those improvements.
Rusher said the county first would need to adopt a resolution of intent with the LGC at least 10 days before filing an application to issue bonds. She suggested taking preliminary steps before the November referendum, allowing the county to proceed with the application process within the LGC’s regulatory calendar as quickly as possible.
She suggested filing the letter of intent by May 31, though that action does not obligate the county. Rusher said the county is not obligated to borrow money, even if the referendum passes, adding that the process could be stopped at any point commissioners decide.
Some other critical steps in the application process include filing a joint legislative committee letter on Nov. 29, 45 days before the LGC meets to approve the application. The commissioners should also file a sworn statement of debt, a statement of estimated interest, and a statement of disclosure with the LGC on June 3, both steps needed to initiate a referendum on the Nov. 5 ballot.
After publishing debt statements and a declaration of a possible tax increase, commissioners would need to hold a public hearing before June 17. In July, a ballot question will be prepared for the Chowan Board of Elections for inclusion on the Nov. 5 ballot. Then following the election, a 30-day window would be allowed for anyone wishing to challenge the election’s validity.
If the referendum should pass, the LGC would discuss Chowan’s request to issue bonds at its next regular meeting on Jan. 14, and a bond resolution will be adopted.
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