Title
Initial Findings Resolution on 2026 Storm Water Construction Period Financing
Action
Action:
A. Adopt an initial findings resolution that makes certain Statements of Fact concerning the Storm Water Construction Period Financing,
B. Provide for the issuance of Storm Water Construction Period Financing in an amount not to exceed $110,000,000, and
C. 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 in short-term notes to provide financing for projects that are 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 $110,000,000 financing will be used on approved major and minor flood control projects and can be supported with current revenues.
§ City Council will be asked to consider approval of the Bond Order related to these actions at the August 10, 2026, Business Meeting.
§ The North Carolina Local Government Commission is expected to review and approve this financing on August 4, 2026.
Fiscal Note
Funding: Storm Water Debt Service Fund
Attachments
Attachment(s)
Initial Findings Resolution