From Brad Briner, State Treasurer of North Carolina

The Local Government Commission (LGC) approved $1.85 billion in financing applications at its meeting Tuesday, April 1. The projects included a vital extension of the Triangle Expressway in Raleigh to relieve longstanding and growing traffic congestion. 

The LGC gave its stamp of approval to a request by the state of North Carolina for $475 million in Grant Anticipation Revenue Vehicle (GARVEE) bonds. GARVEE bonds are issued to allow the state to borrow against future receipts of federal transportation fund revenues for highway projects authorized for federal reimbursement. The funding mechanism allows the state to fund transportation projects today, repaying over time with future federal funds. 

Of the total amount, $300 million would fund a portion of construction of about 10 miles of the Triangle Expressway extension projects in Wake County from I-40 to south of Rock Quarry Road, and from south of Rock Quarry Road to I-87/U.S. Route 64. The work is part of the State Transportation Improvement Plan to complete the I-540 outer loop around the capital city. Additionally, $175 million will be used to refund existing GARVEE bonds to generate debt service savings for the state. 

State Treasurer Brad Briner chairs the LGC. The commission is staffed by the Department of State Treasurer (DST) and has a statutory duty to approve most debt issued by units of local government and public authorities in the state. The commission examines whether the amount of money that units borrow is adequate and reasonable for proposed projects and confirms the governmental units can reasonably afford to repay the debt. It also monitors the financial well-being of more than 1,100 local government units.