Clayton’s $ 80 million loan tied to rapid growth and taxpayer protection

RALEIGH – The Local Government Commission (LGC) has approved a request from the City of Clayton for an $ 80 million revolving loan provided by the State of North Carolina for a wastewater treatment facility to meet rapid residential growth and industrial demands. But first, the city and two large industrial users must come to an agreement on taxpayer protection if demand for using industries – and payments – declines significantly from projections.

The LGC granted conditional approval on Tuesday, September 14, following a $ 15 million loan approval late last year. The LGC is chaired by State Treasurer Dale R. Folwell, CPA, and comprised of the Treasurer of the State Department (DST). The commission has a legal obligation to monitor the financial well-being of more than 1,100 local government units. The commission also examines whether the amount of money borrowed by the units is adequate and reasonable for the proposed projects, and confirms that the government units can reasonably afford to repay the debt.

Clayton’s population has grown by 79%, from 16,116 in 2010 to 28,843 today. This growth, the growing needs of industries such as Novo Nordisk and Grifols Therapeutics, and the impending expiration of treatment agreements with Raleigh and Johnston County have prompted the city to expand its wastewater treatment capacity. A new state-of-the-art biological treatment facility will replace the aging Little Creek facility. Along with other works, the cost of the project is now estimated at $ 175 million.

Novo Nordisk is a Danish pharmaceutical manufacturer that produces medicines to help control blood sugar, including an oral tablet for diabetes. Grifols is a Spanish plasma therapy company. Their two production processes are greedy in water. The new project will provide a processing capacity of up to 6 million gallons per day, with the potential to increase up to 10 million gallons per day.

Among other conditions, loan approval requires these two industries to sign final contracts by Oct. 15 outlining how to calculate their financial obligations. These obligations should include protecting municipal taxpayers from excessive rate increases in the event that industries’ needs for wastewater treatment decrease or are no longer needed. Based on current plans, the average residential bill would drop from $ 88.49 to $ 114.44 in 2026.

City of Garner
A request from the Town of Garner was also approved at the meeting. They were approved to request $ 69 million in general obligations, of which $ 35.5 million would be used to acquire and build new parks and greenways, and improve existing ones.

Spending on new streets, bike paths and sidewalks would be part of the additional $ 24 million, and $ 6.5 million would fund the construction and expansion of new and existing fire, police and other facilities. emergency. Another $ 2.9 million would be spent on stormwater improvements.

An increase in the property tax rate of up to 2 cents per $ 100 of assessment may be required to fund debt service.

Nash County
Nash County has received LGC approval for a plan to build a new detention center consisting of two housing units with a total of 94 beds.

The LGC approved $ 16 million in funding for the project, with no tax increases planned.

City of Angier
The Town of Angier has received the authorization to refinance $ 6.1 million of the water and sewer bond debt.

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