2023 Bonds
About the 2023 Bond Referendum
Huntersville is a vibrant and welcoming community nestled in the heart of the Charlotte and Lake Norman region. With its rich history, natural beauty and strong sense of community, Huntersville offers residents and visitors alike a truly exceptional experience.
Residents have identified Transportation projects and Parks and Recreation projects as high priorities for the Town. This November, residents will find both a Transportation Bond Referendum and a Parks and Recreation Bond Referendum on the ballot. These referendums, if passed, will give the Town Board the authority to issue $58 million in total General Obligation Bonds to expand and improve Parks and Recreation facilities, and improve Transportation needs around Town.
With the Town's exemplary AAA bond rating, General Obligation Bonds enable the community to leverage financing at the lowest possible interest rates. General Obligation financing is considered the best and least expensive of tax-supported municipal debt. These bond referendums are asking the community to vote Yes or No on giving the Town Board the authority to issue $50 million in General Obligation Bonds for Transportation projects, and $8 million in General Obligation Bonds for Parks and Recreation projects.
If passed, these General Obligation Bonds would provide funding to improve and expand Parks and Recreation facilities and improve Transportation issues around Huntersville. If the bond referendum does not pass in November, the projects will likely not move ahead within the next five to ten years. If projects are deemed critical, the board could decide to fund those projects through alternative means, or they may be canceled altogether.
Potential Park Bond Uses
The 2023 Park Bonds will include projects that continue to provide the Huntersville community with healthy park and recreation options for everyone to enjoy. These projects focus on the community priorities that have emerged as a result of the Town's 2030 Parks and Recreation Master Plan . These projects will increase residents' quality of life and provide places to relax, enjoy nature, play and exercise. Potential projects include:
The Park Huntersville Greenway
Funds will match a CRTPO grant to extend the existing Torrence Creek Greenway to the east through the business park up to Mt. Holly-Huntersville Road.
Future Park Land Acquisition
The 2030 Parks Master Plan identified a need of an additional 355 acres of park land by 2030.
Recreation Center Expansion
Doubles existing court space to support additional activities like volleyball, basketball and pickleball, with additional space for classrooms to serve programs with waiting lists.
Waymer Park Splash Pad
This project will add the Town's second splash pad (one being installed at North Mecklenburg Park in FY 2024).
Please note, these are only examples of potential projects, and funding from bonds could be used for different projects than what is listed here.
Potential Transportation Bond Uses
The 2023 Transportation Bonds will include projects that improve traffic flow, expand pedestrian access and address various issues with current roads, intersections and thoroughfares.
Potential projects could include:
Cost Share for Major NCDOT Projects
I-77 / NC-73 Interchange improvements
US-21 Widening (includes sidewalks and any "betterments" from Gilead Road to Westmoreland Road)
NC-73 Widening (sharing in overall cost of project and "betterments" like sidewalks)
Various turn lane and intersection improvements
Beatties Ford Road at Hambright Road
McCoy Road at Hambright Road
Gilead Road West
NC-115 Widening from McCord Road to NC-73 -- project widens NC-115 to a four-land divided section and includes bike and pedestrian accommodations
Sidewalk connections and additions
Please note, these are only examples of potential projects, and funding from bonds could be used for different projects than what is listed here.
Timeline
June 20, 2023: Commissioners approved introduction of bond orders for $50,000,000 in Transportation Bonds and $8,000,000 in Parks and Recreation Bonds to be on the ballot for voter approval in November 2023. They adopted a resolution authorizing these bond orders and calling for a public hearing on both items for July 17, 2023.
July 17, 2023: Commissioners approved a resolution setting a Special Bond Referendum and Directing the Publication of Notice of a Special Bond Referendum and Notification of the Board of Elections for both the $50,000,000 Transportation General Obligation bonds and the $8,000,000 Parks and Recreation General Obligation bonds. Commissioners approved this resolution following public hearings during the July 17, 2023 meeting.
Nov. 7, 2023: Voters will go to the polls to vote Yes or No on giving the Town Board the authority to issue $50 million in General Obligation Bonds for Transportation projects, and $8 million in General Obligations Bonds for Parks and Recreation projects. This puts the power to shape the future of Transportation and Parks and Recreation in Huntersville directly in the hands of the voters.
Potential Tax Impact
As part of the approval process, Town Staff has discussed potential tax impacts with the Town Board. If the bond referendum passes, the Town Board could raise taxes to help pay for the projects funded by the bond issuances. Town staff projects a tax increase of 2.8 cents to fund the debt tied to the General Obligation bonds. As currently projected, bonds are anticipated to be issued in 2024 and 2028. However, if the Town Board decides to issue the debt all at once instead of in separate installments spread out over time, the estimated tax increase to cover this debt service is estimated to be 5 cents per $100 assessed property value.
FAQs
What is the anticipated debt repayment, and how do we anticipate we will pay for this debt?
Generally, bonds are outstanding for a maximum of 20 years. The Town produces a five-year financial forecast, which currently predicts the $58 million in Transportation and Parks and Recreation bonds would be split across two issuances: once in late FY24 and once in FY28. The amount and timing of these bond issuances may change as new information becomes available. The Town will repay this debt through annual debt service payments, which are estimated to last until 20 years after the date the bonds are issued.
Will the bond projects affect funding for other town priorities?
Every budget year the Town Board sets goals and priorities and ultimately approves the budget and the tax rate. Once the bonds are issued, annual debt service payments to repay the debt will be required. With corresponding funding sources or expense reduction, new priorities could be funded within existing resources. Without expense reduction, alternative revenue sources will be required.
What is the remaining debt tied to General Obligation Bonds?
Our existing outstanding GO (General Obligation) debt is required to be spent in the manner approved by the voters, meaning transportation debt can only be used for a transportation purpose, and not a parks and recreation purpose. The Town has no remaining voter approved General Obligation available to be issued to fund capital needs, so we are asking voters for the authority to issue new debt with this referendum.
What is the Town’s debt capacity?
The Town’s Financial Advisor, Davenport & Company, has estimated that $152.5 million to approximately $227 million in new debt (general obligation or other types) could be issued by the Town with reasonable tax rate implications. Funding future debt must be balanced with other personnel and operating Town Board initiatives through the annual budget process.
Why is the Town asking voters to approve general obligation bonds, and not using existing funds?
General obligation bonds are the least costly option available for these projects. The Town’s AAA bond rating is the highest a city or town can achieve and allows the town to borrow money at the lowest possible interest rate. Huntersville is in good financial health, but financing these projects through General Obligation bonds spreads payments out over time, allowing future residents who will benefit from these projects to contribute toward paying for them, and does not place the burden of payment entirely on current residents. Additionally, the Town does not have enough cash available to pay for these important projects while maintaining the high level of service our residents expect, and maintaining fund-balance levels that are required by law and directed by the Town Board.
What happens if the bonds pass?
The Town will have the authority to issue bonds for purposes identified, and Town commissioners will decide when and if the bonds will be issued. If the bond referendum does not pass in November, the projects may not move ahead within the next five to ten years. Some projects may be canceled, and if projects are deemed critical, Commissioners could decide to fund those projects through alternative means.
What are the tax implications of these bonds?
As part of the approval process, Town Staff has discussed potential tax impacts with the Town Board of up to 2.8 cents. If the bond referendum passes, the Town Board could raise taxes to help pay for the projects funded by the bond issuances. Town staff projects a tax increase of 2.8 cents to fund the debt tied to the General Obligation bonds. As currently projected, bonds are anticipated to be issued in 2024 and 2028. However, if the Town Board decides to issue the debt all at once instead of in separate installments spread out over time, the estimated tax increase to cover this debt service is estimated to be 5 cents per $100 assessed property value.
What's the Town's bond rating, and what does that mean?
Huntersville is rated AAA by Moody’s Investors Service and Standard and Poor’s Financial Services, which are the highest available bond ratings. This ensures lower interest rates for voter-approved bonds and indicates excellent financial health and management of the Town.
Resources
Learn more about potential projects that could be funded by General Obligation Bonds by viewing the Town’s Capital Improvement Projects list: https://www.huntersville.org/DocumentCenter/View/13030/FY-23-24-Adopted-Budget-CIP?bidId=
Learn more about the Town’s approved budget on our website: https://www.huntersville.org/DocumentCenter/View/13023/FY-23-24-Adopted-Budget
Learn more about registering to vote by visiting the Mecklenburg County Board of Elections website: https://vote.mecknc.gov/