LGC Approves Johnston County School Bonds

RALEIGH, N.C. — The Local Government Commission (LGC) on Tuesday approved multiple financing requests, with Johnston County receiving the largest local allocation for school construction and refinancing.

Johnston County was authorized to issue $134.5 million in limited obligation bonds to fund the design and construction of a new school building and to demolish the existing Clayton High School and related structures. Officials said the new facility will provide modern learning spaces, improved safety features and capacity for more than 2,000 students in a rapidly growing area. No tax increase is anticipated.

In a separate action, the LGC approved about $12.3 million in general obligation bond refinancing for Johnston County schools, a move expected to generate debt service savings.

The commission also approved a financing request from the city of Goldsboro, authorizing a $3.8 million installment financing contract. Proceeds will be used to purchase vehicles and install equipment for use by multiple city departments.

The Town of Speed in Edgecombe County also received approval for its plan of action related to the distribution of town assets as it moves toward voluntarily surrendering its charter. The town, which has about 63 residents and was incorporated in 1901, has faced longstanding financial compliance issues.

Under the approved plan, town-owned property will be transferred to Edgecombe County and the Speed Volunteer Fire Department. Approximately $42,000 in cash on hand will also be transferred to Edgecombe County. County officials said they plan to form a “Historic Town of Speed Committee” to advise on the use of the funds for community benefit. Anticipated tax receipts and personal property will also transfer to the county. The town has no known outstanding debt or contractual obligations.

State Treasurer Brad Briner chairs the LGC, which is staffed by the N.C. Department of State Treasurer. The commission reviews most local government debt to determine whether borrowing is reasonable, affordable and appropriate, and it monitors the financial condition of more than 1,100 local government units across the state.