City bond initiative moves forward
By Rochelle Moore
Published in News on June 30, 2016 1:46 PM
Efforts to partially fund construction costs for a new multi-sports complex and speed road repairs are motivating factors that could result in a $10 million Goldsboro bond referendum in November.
The Goldsboro City Council voted in favor of a bond resolution Monday that sets in motion a series of approvals and meetings required before the referendum is added to the Nov. 8 general election ballot.
The council's decision also sets Aug. 1 as the public hearing date for the bond, which will follow with a council vote. The Local Government Commission is reviewing the proposal and could make a decision within the next couple months, said Kaye Scott, Goldsboro finance director.
If approved, city leaders will seek the bonds that include $7 million for construction, repair and installation of streets, sidewalks, streetscapes and related utility infrastructure and $3 million for the construction of a multi-sports complex.
Mayor Chuck Allen said the funding will allow the city to resurface streets in need of repair and speed development efforts of the multi-sports complex.
"I personally believe in it," Allen said. "We'll need to help our citizens believe in it. Hopefully, they will believe in the need and will support it when the time comes."
No property tax increase is planned for repayment of the bonds, the mayor and City Manager Scott Stevens said.
"This bond would not have an effect on property taxes," Stevens said. "We would sell the bonds without a property tax increase."
City staff plan to use existing revenue sources, including a portion of the hotel occupancy tax for the sports complex and revenues collected from the city's annual $10 vehicle licensing fee.
STREET BOND
The recently approved vehicle license fee will produce $270,000 each year, and the money will be used to pay down the debt.
Allen said the city's annual budget allocation of $500,000 for street resurfacing could also be used toward the debt.
"We think we have the money for the repayment of the bond," Allen said.
The bond would allow the city to span resurfacing projects over several budget years. Projects would be prioritized, but the process would still be faster due to city needs. The city's annual resurfacing needs are closer in cost to several million dollars per year, Allen said.
The bond would also allow for the construction of paved streets in a few areas where dirt streets currently exist. New sidewalks, including areas along Wayne Memorial Drive and Spence Avenue, could also be completed, Allen said.
"The bulk of the money would go to resurfacing," Allen said. "Some of our roads are in dire need of being resurfaced."
City staff are currently working on a pavement condition study that will evaluate and rank city streets in need of resurfacing or new construction.
The survey will take place during the next several months and a list of priority streets may not be finalized before voters cast their ballots in November, Stevens said.
Councilman Gene Aycock asked for more detail in how the bond would be spent, during the council's Monday work session. He was provided with the description listed in the bond resolution that includes financing for the construction, repair, installation and equipping of streets, sidewalks, streetscapes and related utility infrastructure.
"It was too generalized," Aycock said. "I'd like to see it all used for paving streets, repaving and building dirt streets. We're so far behind in street resurfacing in the city that it's hurting us."
Aycock supports the total bond package, even though he thinks the referendum will have difficulty passing in November.
Councilman Mark Stevens declined to offer his view on the bonds but will do so as the council gets closer to its vote in August.
The bond resolution was passed unanimously by the council during its meeting Monday.
SPORTS COMPLEX
The $3 million multi-sports complex bond proposal is being sought to accelerate construction, which may otherwise be completed in phases, Stevens said.
The complex includes eight multi-sports fields, walking trails, concession facilities and parking, which would be added on 62 acres on the perimeter of Seymour Johnson Air Force Base, on Oak Forest Road.
City and base officials entered into a 20 year lease agreement in March that allows for construction and shared use of the property.
The city will develop and manage the complex area, and base access, during designated dates and times, serves as serve as rent paid in exchange for the city's full-time access.
The agreement also includes a city commitment to spend up to $600,000 for an 2,500-square-foot addition to the base fitness center.
The proposed bond financing is planned to match other funding sources, including a $3 million, low-interest loan from Wayne County government. The loan would be paid during a 15-year term, at 1.5 percent interest.
The city also plans to use a portion of its hotel occupancy taxes toward the project, estimated to cost between $6 and $8 million. Occupancy taxes would also be a source of revenue to pay the bond debt. City general funds would also be used, Stevens said.
Occupancy tax revenues in Goldsboro are expected to increase in future years, following the opening of the Maxwell Regional Agricultural and Convention Center on Wayne Memorial Drive. Increased visitors are also expected following the opening of the multi-sports complex. City leaders are also seeking a full-service hotel, which would locate next to the agricultural center and boost occupancy tax revenues.
"We would expect our occupancy tax to increase significantly with the agricultural center and the sports complex," Stevens said.
City leaders plan to move ahead with construction, even if the bond referendum fails, Stevens said.
"We're not going to hold off because of the bond," he said.
City leaders are currently seeking bids for the addition of an 8-foot-high, black steel fence that extends 4,200 linear feet around the base, said Randy Guthrie, Goldsboro assistant city manager. The fence replaces and moves the base security fence and allows for the addition of the sports complex.
The construction of the multi-sports complex will be out for bid in November or December and a contract award could be approved by the city council between January and March, Stevens said.
The project could take a year to complete, depending on whether conditions, with an expected time of completion in the fall of 2018, Stevens said.