Town of Cary
Home MenuMunicipal Bond Sales
Overview
The Town sells bonds to borrow money to help pay for projects such as water and sewer plants, streets, parks, fire trucks, fire stations and other Town government buildings. Borrowing for such projects enables future taxpayers to share the cost.
General obligation bonds require voters' approval. Other debt financing options include revenue bonds, certificates of participation, installment purchase contracts and state revolving loans.
Ratings
Town of Cary general obligation bonds are rated AAA -- the best possible -- by all three national credit rating agencies. These agencies generally consider revenue bonds and certificates of participation to be higher risk since taxing power is not pledged. However, all Town of Cary debt carries high ratings because of the Town's financial strength.
|
Financing Type |
Moody's |
Standard &
Poor's
|
Fitch |
|---|---|---|---|
|
General obligation
bonds |
Aaa |
AAA |
AAA |
|
Revenue bonds
|
Aaa |
AAA |
AAA |
|
Certificates |
Aa1 |
AA+ |
AA+ |
Further explanation of the significance of such ratings may be obtained from Moody’s, S&P and Fitch respectively.
Ratings Announcements – Moody's, Standard and Poor's, and Fitch
Buying Town of Cary Bonds
The N.C. Department of State Treasurer handles Town of Cary bond sales. Most bonds are sold competitively to the investment banking firm that offers the lowest interest rate. That firm then sells the bonds to individuals and institutions such as insurance companies. Individuals can buy Town of Cary bonds from registered broker dealers.
Types of Debt
General Obligation Bonds (GO)
- Description: Town's taxing power pledged; voter approval required
- Town of Cary uses: Water and sewer projects, streets, parks and recreation projects
Revenue Bonds (Rev)
- Description: Specific revenue pledged; taxing power not pledged so no vote required
- Town of Cary uses: Reclaimed water system, sewer system improvements, water system improvements, water tanks
Certificates of Participation (COPS) or Limited Obligation Bonds (LOBS)
- Description: Specific property pledged; voter approval not required
- Town of Cary uses: Town Hall expansion, N.C. 55 widening, street improvements
Installment Purchase Contracts (IP)
- Description: Property that is financed used as collateral
- Town of Cary uses: Projects costing less than $10 million
State Revolving Loans (SRL)
- Description: Approved by N.C. Department of Environment and Natural Resources
- Town of Cary uses: Sewer and water projects
Debt Outstanding
General Fund
|
Type of Debt |
Issue Name |
Balance as of 6/30/24 |
|---|---|---|
|
GO |
2006 Public Improvement, Variable Rate |
$ 11,455,000 |
|
GO |
2014 Public Improvement |
1,515,000 |
| GO | 2017A Public Improvement | 20,305,000 |
| GO | 2017B Refunding | 7,578,464 |
| GO | 2019A Public Improvement | 12,670,000 |
| GO | 2020A Taxable Refunding | 14,410,000 |
| GO | 2021 Public Improvement | 112,500,000 |
|
IP |
2018 Fire Financing |
5,650,000 |
| IP | 2020 Fire Financing | 612,920 |
| IP | 2024A Vehicle Financing | 10,242,000 |
| IP | 2024B Fire Financing | 1,457,000 |
| Total General Fund Debt Outstanding | $ 198,395,384 |
Utility Fund
|
Type of Debt |
Issue Name |
Balance as of 6/30/24 |
|---|---|---|
|
GO |
2014 Public Improvement |
$ 1,525,000 |
| GO | 2017B Refunding | 6,766,534 |
| GO | 2020A Taxable Refunding | 30,320,000 |
|
REV |
2015 Revenue Bonds |
28,030,000 |
| REV | 2017A Revenue Bonds | 12,900,000 |
| REV | 2017B Refunding | 87,115,000 |
|
REV |
2020B Refunding | 17,220,000
|
|
REV |
2020C Taxable Refunding |
35,305,000 |
| Total Utility Fund Debt Outstanding | $ 219,181,537 |
Links
Annual Comprehensive Financial Report
Contact
Marcelo L. Olarte
Debt and Investment Manager
Town of Cary
marcelo.olarte@carync.gov
(984) 542-3605