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Sanford approves financing steps for Pittsboro force main and lift station; $55.1 million state grant replaced through MOU
Summary
Council authorized application to the Local Government Commission for revenue bonds to support the Pittsboro force main and lift station and accepted a $55.1 million grant replacement via a memorandum of understanding with the North Carolina Department of Commerce. The project financing package also includes SRF loans.
Sanford City Council on Feb. 4 authorized steps to finance the Pittsboro force main and lift station project, including applying to the Local Government Commission for revenue bond authority and approving a memorandum of understanding that replaces a prior Golden Leaf award with a $55.1 million state grant through the Department of Commerce.
Finance staff told the council the resolution authorizes application for revenue bond series 2025A not to exceed $25 million; staff said the actual borrowing for the Pittsboro force main and lift station is expected to be closer to $17.35 million for the project portion that will be financed through revenue bonds. Council also authorized borrowing to pay off outstanding Siler City loans tied to an anticipated Siler City merger; staff said if the Siler City merger is delayed the borrowed funds would remain in escrow until the merger is effective.
Miss Kelly explained the total Pittsboro Force Main and lift-station project cost is roughly $105.6 million and is funded by three sources: more than $37.1 million in State Revolving Fund (SRF) loans (including approximately $500,000 in principal forgiveness), the $55.1 million state grant in the MOU with the Department of Commerce, and the remaining roughly $13.3 million to be covered by the revenue bond issuance. Council was told SRF financing is at 0% interest.
Council approved a memorandum of understanding with the North Carolina Department of Commerce to replace a previously awarded $55.1 million Golden Leaf allocation; Miss Kelly said the MOU is the replacement mechanism for the same $55.1 million appropriation. Councilors asked whether projected revenues will cover debt obligations; staff replied the Siler City and Pittsboro rate models (prepared by consultants) include revenue projections to cover the debt once mergers are effective.
By motion and voice vote the council approved the application and related actions to proceed with revenue bond authorization and accepted the Department of Commerce memorandum of understanding.
