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 and Poors |
Fitch |
| General obligation bonds | Aaa | AAA | AAA |
| Revenue bonds | Aa1 | AAA | AAA |
| Certificates of participation | Aa1 | AA+ | AA+ |
Ratings summaries - Read what the ratings agencies have said about Cary.
Pending Sales
The Town expects to sell general obligation bonds in 2008 for utility projects. The Town schedules bond sales based on the estimated construction dates of projects.
The following general obligation bonds have been authorized by Cary voters, but not yet issued. Some of the following authorization has been budgeted for current projects.
| Description | Date Approved | Amount |
| Water | Feb. 2, 1999 | $7,410,000 |
| Streets | April 8, 2003 | $98,405,000 |
| Parks & Recreation | April 8, 2003 | $28,095,000 |
| Wastewater | May 3, 2005 | $110,000,000 |
| Open Space | May 3, 2005 | $10,000,000 |
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 Cary bonds from registered broker dealers.
CUSIP Numbers
A bond's CUSIP is an alphanumeric identification code, usually nine characters, assigned to each maturity of a bond issue and is printed on the face of each individual bond. All municipal bonds are assigned a CUSIP number prior to pricing.
CUSIP numbers for bonds outstanding as of December 31, 2007.
Types of Debt
General Obligation Bonds
- Description - Town's taxing power pledged; voter approval required
- Town of Cary uses - Water and sewer projects, streets, parks and recreation projects
Revenue Bonds
- Description - Specific revenue pledged; taxing power not pledged so no vote required
- Town of Cary uses - Reclaimed water system, sewer system improvements, water tanks
Certificates of Participation
- Description - Specific property pledged; voter approval not required
- Town of Cary uses - Town Hall expansion, N.C. 55 widening, street improvements
Installment Purchase Contracts
- Description - Property that is financed used as collateral
- Town of Cary uses - Projects costing less than $10 million
- Description – Approved to N.C. Department of Environment and Natural Resources
- Town of Cary uses – Sewer projects
Links
Comprehensive Annual Financial Report
Contact
Pat Liguori
Deputy Treasurer
Town of Cary Finance Department
P.O. Box 8005
Cary, NC 27512-8005
(919) 462-3957
pat.liguori@townofcary.org
Karen Mills
Finance Director
Town of Cary
P.O. Box 8005
Cary, NC 27512-8005
(919) 469-4110
karen.mills@townofcary.org