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Cary council extends 2019 bond authority and authorizes up to $50M in bond‑anticipation notes to reimburse projects and fund near‑term needs
Summary
The Cary Town Council voted unanimously to extend the 2019 referendum bond orders to 2029 and to authorize issuance of up to $50 million in bond anticipation notes (BANS) to reimburse roughly $25M in already‑incurred expenses and provide interim financing for near‑complete transportation and park projects.
The Cary Town Council voted unanimously to extend its 2019 referendum bond orders (adding three years to allow issuance through 2029) and to authorize issuance of general obligation bond anticipation notes (BANs) not to exceed $50 million, with staff recommending PNC Bank as the lender after a competitive RFP process.
Assistant Town Manager Dana Widmar and Debt & Investment Manager Marcello Alarte told the council that state law allows bonds authorized by referendum to be issued within seven years of the referendum date, and that the extension would move the deadline for Cary’s 2019 bonds from 2026 to 2029. Alarte said the town previously issued $125 million of the referendum authority and that approximately $100 million remained unissued across parks and transportation line items.
Alarte explained that BANs are a short‑term financing vehicle (typically two to three years) used as an interim option before refunding with long‑term bonds. He told council that about $25 million in expenses for projects such as Fenton public infrastructure and downtown public parking already need reimbursement under IRS timing rules, and that issuing BANs would enable that reimbursement and provide flexibility to fund near‑complete projects as needed. Staff proposed $45 million of the BANs for transportation projects and $5 million for parks and recreation, with PNC offering the most advantageous terms among four respondents.
Speakers from the public supported the extension but urged clearer and centralized reporting on project selection and prioritization; several council members emphasized prioritizing safety projects such as sidewalks when deploying funds. Council approved the bond‑order extensions (separate motions for parks and for transportation) and unanimously adopted the BAN authorization resolution to proceed with PNC; the BANs will be reviewed by the Local Government Commission and, if approved, expected to close in early October.
