Infrastructure Bond Bill Signed

North Carolina Gov. Mike Easley last week signed into law a bill that will allow cities and counties that face increased demands for infrastructure improvements as a result of rapid growth and development to issue revenue bonds to cover those needs.

In order for a city or county to issue bonds under the law, its respective city council or board of commissioners must authorize a special assessment that will be used to back the bonds.

Assessments imposed under this law are payable in annual installments. The city council or board of commissioners must set the number of annual installments, which may not be more than 30. The installments are due on the date that property taxes are due.

The governing body must also set estimates for the costs of the improvements. Assessments can be imposed before the costs are incurred based on that estimate.

Proceeds can be used for sanitary sewer systems, storm sewers and flood control facilities, water systems, public transportation facilities, school facilities, and streets and sidewalks.

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