Municipal Bond Sales

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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
of participation

Aa1

AA+

AA+

Further explanation of the significance of such ratings may be obtained from Moody’s, S&P and Fitch respectively.

Rating symbols explanation

Ratings Announcements – Moody's, Standard and Poor's, and Fitch

Pending Sales

The Town is planning to issue $16.05 million in general obligation bonds on July 16, 2019. This is the remaining authority from the 2012 Community Investment Bond Referendum. The proceeds will be used to fund Fire, Parks and Recreation and Transportation projects.

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. 

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 June 30, 2019. 

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 6/30/19

GO

2006 Public Improvement, Variable Rate

$ 27,455,000

GO

2009 Refunding

1,005,000

GO

2010B Refunding

8,050,000

GO

2014 Public Improvement

22,705,000

GO 2017A Public Improvement 28,130,000
GO  2017B Refunding 15,156,927 

LOBs

2010 LOBs Refunding

3,165,000

LOBs

2012 LOBS Refunding

6,440,000

IP

2018 Fire Financing

8,475,000


Total General Fund Debt Outstanding $120,581,927

Utility Fund

Type of Debt

Issue Name

Balance as of 6/30/19

GO

2009 Refunding

$3,430,000

GO

2010A Refunding

5,760,000

GO

2014 Public Improvement

36,255,000

GO 2017B Refunding  13,533,073

REV

2013 Revenue Bonds

11,875,000

REV

2015 Revenue Bonds

49,275,000

REV 2017A Revenue Bonds   30,450,000
REV  2017B Refunding 92,140,000 

SRL

2004 Biosolids

3,578,128

SRL

2005 WWRWMF

1,429,873

SRL

2010 WWRWMF #2

624,738

SRL

2011 WWRWMF Construction

26,250,000


Total Utility Fund Debt Outstanding $274,600,812

Links

Comprehensive Annual Financial Report

Annual Budget

Contact

Mary Beth Huber
Deputy Treasurer
Town of Cary Finance Department
P.O. Box 8005
Cary, NC 27512-8005
(919) 462-3957
marybeth.huber@townofcary.org

Karen Mills
Chief Financial Officer
Town of Cary
P.O. Box 8005
Cary, NC 27512-8005
(919) 469-4110
karen.mills@townofcary.org

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