Fayetteville moves to issue first tranche of 2023 voter-approved GEO bonds

The Fayetteville City Council on Jan. 12 authorized issuance of the first tranche of general obligation improvement bonds approved by voters in 2023. Finance Director Yates told council the tranche being issued includes $25 million for public infrastructure projects and $15 million for public safety projects such as fire stations and a 911 call center.

Yates said staff coordinated with the Local Government Commission (LGC) and the city's financial adviser to time the market for favorable rates and to align the borrowing with project spend-down schedules. He described the issuance as following the planned phasing embedded in the 2023 voter-approved GEO bond program.

"When we want to go to the market to borrow that money, we want to be sure that we have a sure project completion and that we borrow enough money to do it," Yates said. He added the LGC has approved the debt issuance steps required under North Carolina oversight.

Council members noted the advantage of timing and the intent to use proceeds in alignment with projects already under design or near completion; one member described the action as "essentially paying ourselves back" for earlier city-held cash advances used to keep projects moving while rates were unfavorable.

Council voted to approve the resolution to issue the bonds; staff said the bonds will not be sold retail but can be purchased on the secondary market through brokers.

Next steps: staff will proceed with the LGC-authorized issuance process and market execution; project departments will receive proceeds as matched to their spend plans and the city will report on project progress.