Dare County approves bonds to finance Early College; officials say state lottery and sales-tax funds will cover debt, no property tax increase

The Dare County Board of Commissioners on June 9 unanimously approved a package of bond-related actions to finance the Early College and portions of the school capital improvement plan.

The board adopted a reimbursement resolution to allow the county to reimburse pre-closing expenses from bond proceeds and approved the issuance of Series 2025A limited-obligation bonds, with a “not to exceed” par amount the county set for the financing. County officials said the debt will be repaid from state restricted capital funds (lottery receipts and a dedicated share of state sales tax) and will not require an increase in local property tax rates.

County finance staff described the funding mechanics during the meeting. The state’s school capital program pools lottery and a portion of state sales tax in a restricted fund; local school systems receive allocations from that fund that are typically applied to debt service on school capital projects. The county manager and finance director told commissioners that the Early College project would be financed using those state capital resources and that the county’s taxing power would not be pledged to the bonds.

Finance staff also described timing and pricing details available at the meeting: the county filed the required application with the North Carolina Local Government Commission and the preliminary official statement for the offering was approved for distribution; the underwriter’s estimate of true interest cost at the time of the meeting was about 4.18 percent. County staff said the closing on the bonds is scheduled for late July and that the county will reissue the official statement with final numbers after pricing.

School leaders and county officials also presented the five‑year school capital improvement plan, which lists projects including classroom additions and gym/field-house work at First Flight schools and Cape Hatteras, plus a central office storage project. The board adopted the School CIP and associated capital ordinances and budget amendments for fiscal 2026. Officials said one of the projects — a field house and related improvements — is planned to be financed in a later bond issuance so debt service timing fits the county’s debt model.

Commissioners and staff also clarified that an existing, state-established public school building and renovation fund (created in 2024) holds about $1.7 million for repairs and renovation; the school system proposed using part of that fund in fiscal 2026 for alarm system replacements and similar repair work. The board approved using those restricted state funds for eligible repairs.

County staff reported that the Early College will enroll 58 students in its initial cohort. Multiple board members emphasized that the funding approach means the Early College financing does not increase local property taxes and urged the public to rely on the county’s explanation rather than social-media posts.

The board approved the related documents and actions by unanimous vote.