Dare County approves limited‑obligation bonds to finance Early College building; officials say no property tax increase required

Dare County commissioners on June 9 adopted resolutions authorizing up to $26.05 million in limited‑obligation bonds to finance construction of the Dare County Early College and related capital projects.

County Finance Director Dave Clawson, speaking at his final board meeting before retirement, told commissioners the bonds will be secured by previously pledged county facilities and paid with state school capital funds, principally the staterestricted sales tax and lottery revenues earmarked for school capital projects. He said the countydoes not need to raise property taxes to cover the debt service.

The board adopted a reimbursement resolution that lets the county reimburse itself from bond proceeds for certain project costs paid before the closing date, and approved a single combined financing resolution the board will forward to the Local Government Commission. County staff said the financing is scheduled to close in late July and the bonds will be sold in mid‑July; the preliminary true interest cost in underwriting runs was about 4.18 percent.

Why it matters: The Early College will place college‑level classrooms and a field house on the College of the Albemarle campus, a project the Board of Education prioritized and the county intends to fund with state capital dollars. Commissioners and staff said the approach leverages state restricted capital (lottery and specific sales tax pools) so local property tax rates need not increase to finance the building.

"The resolution states there is no property tax increase necessary to finance the project per the school debt affordability model," the chairman noted before the vote.

What commissioners and staff said - Dave Clawson, Dare County Finance Director: explained that the county will pledge the Health and Human Services Building (previously improved and pledged) and the COA building as security for the installment financing contract and described the budgetary and timing rationale for the not‑to‑exceed amount. - County Manager (staff): confirmed the bond documents and the preliminary official statement would be finalized and reissued after sale and that the countyis in compliance with applicable budget and audit rules.

Board action: The board voted unanimously to adopt the reimbursement resolution, hold the statutorily required public hearing and approve the financing resolution and preliminary official statement that authorize the sale of the series 2025A limited‑obligation bonds.

Next steps: County staff will finalize the bond documents with the underwriter and the Dare County Public Facilities Corporation (the nonprofit counterparty), file with the Local Government Commission and proceed to closing, expected in July. The county will reissue the official statement with final sale results after the bonds are priced.

A note on funding: County staff and the school system told the board the Early College project will draw on state capital funds that combine lottery proceeds and a restricted portion of statewide sales tax dedicated to school capital; county general‑fund property tax revenues were not pledged to pay the Early College debt service.

Ending: Commissioners thanked Clawson at the meeting for his long service and welcomed Matt Matika, the countychief financial officer who began work earlier in June and will manage the department going forward.