Mebane council approves two parkland purchases and authorizes capital transfers tied to FY27 financing scenarios

Mebane’s City Council approved contracts to acquire two parcels for future parks and authorized budget amendments to adjust capital-reserve funds, votes taken during a special FY27 budget work session on April 9.

City Manager Richard White presented a budget built around a proposed 2¢ property tax increase and several capital priorities. White said staff prepared three financing scenarios that mix debt and funds from the city’s general capital reserve to cover a new Fire Station 4, public-works and utilities equipment, and potential parkland purchases. Finance director Daphna summarized the scenarios and lifetime interest comparisons, saying one scenario — buying one parcel and applying $1.5 million from reserves toward the station — would reduce interest on the station debt by roughly $900,000 over 20 years compared with financing the entire amount with debt.

Councilors debated trade-offs between acquiring land now and reducing long-term interest costs. Staff described the Thorbrite parcel as a fronting tract that, when blended with nearby DOT-conveyed acreage, offered favorable per-acre pricing. The 7 Mile Farm parcel was presented under a contract for about $1.5 million for roughly 50 acres; the purchase would be contingent on annexation and zoning by the city. Parks and public-works staff noted that the 7 Mile Farm site lies contiguous to an existing pump station, while Thorbrite’s proximity to DOT land could improve overall acreage value.

Council member (speaker 5) moved to proceed with the Thorbrite contract; the mayor seconded and the motion was approved by voice vote with at least one councilor registering opposition. Council member (speaker 6) moved to purchase the 7 Mile Farm parcel; a second followed and the motion passed by voice, recorded as 3–2 in favor. Afterward the council moved to approve the necessary budget amendments to appropriate capital-reserve funds for those purchases; staff and the finance director confirmed budget amendments would be required and the council approved the measures.

Staff emphasized that the council could choose from the scenarios presented: buy one parcel and apply reserve funds toward the station, buy both and finance more with debt, or delay land purchases and apply more reserve money to lower station interest costs. Finance director Daphna presented annual payment comparisons: in one scenario the annual station payment was estimated at about $361,092 for 20 years (with $1.5 million from reserves and $4.45 million in debt); financing everything increased annual payments to roughly $481,004.

Councilors repeatedly raised the point that land is finite and that waiting to buy could increase future costs. Several councilors favored the larger North-side parcel as the better long-term value, while others emphasized the city’s stated priority of finding a South-side park site. The council directed staff to complete contract actions and prepare the formal budget amendments for subsequent adoption steps.

The council’s actions on the parcels were procedural approvals to proceed under the terms presented; annexation, zoning and other contingencies were noted as prerequisites for closing the 7 Mile Farm contract. The work session concluded with the council moving on to occupancy-tax and utility-fund discussions.