Henderson council explores municipal bonds to finance infrastructure, affordable housing and downtown projects
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Summary
At a Sept. 11 special meeting, councilors heard from a Loop Capital Markets presenter on municipal bond options, including GO bonds, revenue bonds and COPs; presenters urged prioritizing projects, noted LGC review is required, and offered a potential referendum and bond-team timeline.
Henderson City Council used a Sept. 11 work session to explore municipal bonds as a financing option for capital projects, with a presenter from Loop Capital Markets outlining bond types, likely approvals and timing.
Alex Wallace of Loop Capital Markets described the firm and emphasized the North Carolina Local Government Commission’s role in reviewing municipal debt and an analysis of the city’s capacity to repay. Wallace said municipal bonds are tax-exempt and typically carry lower interest rates than comparable taxable debt.
A second presenter (identified in the minutes as "Mr. Marshall") provided example interest-rate ranges and practical details. The minutes record the rate examples as roughly 2.50–2.75% for one-year borrowing, 2.50–3.00% for ten-year, and about 3.50–3.75% for thirty-year borrowings; presenters noted municipal rates often run about 70–75% of comparable U.S. Treasury rates.
Mayor Melissa Elliott urged bundling multiple projects rather than relying solely on grants, saying borrowing could "give the City a complete makeover, allowing for a thriving city." Councilors and staff discussed candidate projects that could be combined in a bond package, including affordable housing, paving and sidewalks, abandonment and reuse of railroad right-of-way, greenways, new fire station(s), completion of the Embassy Block, a new City Hall and a splash park.
Councilmember Garry D. Daeke asked about sequencing — stressing that infrastructure work (utilities) should precede paving to avoid tearing up new streets — and noted state-mandated work such as stormwater projects and required lead-and-copper line replacements. The minutes record Mr. Marshall as saying tax-exempt borrowing cannot be used to borrow for personnel expenses.
Presenters recommended that the city prioritize projects in a capital improvement plan, gather public feedback and demonstrate secured funding when applying for grants. The minutes outline an illustrative timeline: a referendum process could take three to six months, followed by another four to five months to assemble a bond team and complete pre-issuance work.
Council took no formal vote on financing options during the work session; the discussion was advisory and intended to inform later decisions about project prioritization and possible future referendums.