Title
Authorization of 2026 Storm Water Revenue Construction Period Financing
Action
Action:
A. Adopt a bond order and resolution authorizing the issuance of up to $110,000,000 of construction period financing and calling for the execution and delivery of various documents in connection with the issuance, and
B. Authorize city officials to take necessary actions to complete the financing, including making the application to the Local Government Commission.
Body
Staff Resource(s):
Matthew Hastedt, Finance
Angela Charles, Charlotte Water
Mike Davis, Storm Water Services
Explanation
§ This action authorizes a new construction period financing program for up to $110 million to provide for the short-term financing for projects in active construction or design.
- Construction period financing such as Bond Anticipation Note (BANs) and Commercial Paper (CP), are commonly used debt financing tools used by municipal governments to help provide short term interim financing to capital projects.
- Utilizing construction period financings reduces interest cost, promotes rate stability, and provides flexibility in the timing of the spending.
- The 2026 Construction Period Financing of up to $110 million is planned in two steps: a short-term construction period draw program lasting up to 36 months, which will then be converted into long-term, fixed rate revenue bonds.
§ The construction period financing will be in the form of a $110 million privately placed drawdown program, allowing the city to reimburse expenses on a monthly basis during construction and eliminating interest expense on funds not yet expended on the project.
§ The $110 million will be used on approved projects and can be supported with current revenues. Projects funded include major and minor flood control projects.
§ The North Carolina Local Government Commission reviewed and approved this financing on August 4, 2026.
Fiscal Note
Funding: Storm Water Debt Service Fund
Attachments
Attachment(s)
Bond Order
Bond Resolution