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CONSERVATION FINANCE FEASIBILITY STUDY | JANUARY 2022

BUNCOMBE COUNTY, NORTH CAROLINA


BUNCOMBE COUNTY, NORTH CAROLINA | CONSERVATION FINANCE FEASIBILITY STUDY | JANUARY 2022

Copyright © January 2022, The Trust for Public Land.


All rights reserved.
Cover Photo: David Swann.

2 | THE TRUST FOR PUBLIC LAND | CONSERVATION FINANCE DEPARTMENT


BUNCOMBE COUNTY, NORTH CAROLINA | CONSERVATION FINANCE FEASIBILITY STUDY | JANUARY 2022

TABLE OF CONTENTS
Introduction 4
Executive Summary 5
Overview 6
Governance ..........................................................................................................6
Demographics ......................................................................................................6
Budget ..................................................................................................................7
Choosing a Local Funding Strategy 9
Conservation Finance Ballot Measures in North Carolina ..................................10
General Obligation Bonds 11
Issuing Debt for Conservation and Affordable Housing ......................................13
Implementation ...................................................................................................14
Occupancy Tax 15
Property Tax 16
Using the Property Tax for Conservation and Affordable Housing .....................17
Implementation ...................................................................................................17
Sales Tax 19
Election Analysis 21
Election History ..................................................................................................21
Voter Registration and Turnout ..........................................................................22
Appendices 23
Appendix A: Revenue Options Summary ...........................................................24
Appendix B: North Carolina Local Conservation Finance Measures ..................25
Appendix C: National Examples of Local Affordable Housing Measures ...........28
Appendix D: Local Government Bond Act – Procedure for Issuing Bonds .........30

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INTRODUCTION
The Trust for Public Land works to protect the places people care about and to create close-to-home
parks—particularly in and near cities, where 80 percent of Americans live. Our goal is to ensure that
every child has easy access to a safe place to play in nature. We also conserve working farms, ranches,
and forests; lands and buildings of historical and cultural importance; rivers, streams, coasts, and
watersheds; trails and other special places. Since 1972, the Trust for Public Land has protected more than
3.7 million acres and completed more than 5,000 park and conservation projects.
The Trust for Public Land’s Conservation Finance program helps state and local governments design,
pass, and implement legislation and ballot measures that create new public funds for parks and land
conservation. We’ve helped pass more than 600 ballot measures—an 83 percent success rate—creating
more than $84 billion in voter approved funding for parks, land conservation, and restoration. In North
Carolina, the Trust for Public Land assisted Mecklenburg County in passing a $250 million bond for
parks and open space in 2008. The measure passed with 62 percent support. Also in 2008, we helped the
town of Clayton pass a $4 million bond for parks and recreation, with 74 percent support. In May of
1999, Asheville voters rejected an $18 million bond for parks, recreation and greenways. The Trust for
Public Land did assist with this effort, which received only 47 percent of the vote.
The Trust for Public Land has undertaken feasibility research to explore sustainable, reliable, ongoing
sources of funding for parks, trails, land and water conservation, affordable housing, and related priorities
in Buncombe County. Given the substantial investment of time and resources required for a successful
ballot initiative, preliminary research is essential to determine the feasibility of such an effort. This study
presents several viable local public options for funding land conservation, parks, and affordable housing
in the county and provides analysis of which local options and funding levels are feasible, economically
prudent, and likely to be publicly acceptable. This research provides a stand-alone, fact-based reference
document that can be used to evaluate financing mechanisms from an objective vantage point. 1

1
This feasibility study is not a legal document and should not be relied upon for legal purposes or a legal opinion. The contents of this report
are based on the best available information at the time of research and drafting, December 2021-January 2022.

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BUNCOMBE COUNTY, NORTH CAROLINA | CONSERVATION FINANCE FEASIBILITY STUDY | JANUARY 2022

EXECUTIVE SUMMARY
The Trust for Public Land has undertaken a feasibility analysis to explore the public funding options
available to support parks, trails, land and water conservation, and affordable housing in Buncombe
County. In order to understand available and appropriate funding sources, this report first briefly delves
into the county’s background for a general overview of its people, government structure, and budget.
Next, the report analyzes possible financing alternatives, including the authority for their use and revenue
raising capacity. Finally, since some revenue options require approval by voters, this report provides
pertinent election information, such as voter turnout history and election results for recent local finance
measures.
Local governments in North Carolina have three main financing options available to fund capital
improvements and services including acquisition of land for parks, open space and other natural areas:
general obligation bonds, property taxes, and sales taxes. This study provides information on these three
options, as well as the occupancy tax, and the possibility of using these funding mechanisms for
affordable housing in Buncombe County. These options are summarized in Appendix A.
• General obligation bonds: Counties in North Carolina may issue bonds for parks, open space, and
affordable housing. Bond proceeds are limited to capital projects and may not be used for
operations and maintenance. In Buncombe County, for instance, a $50 million bond would add
about $3.7 million to the county’s annual debt service and cost the typical homeowner in the
county about $23 per year in additional property taxes for 20 years. Voter approval is required.
• Occupancy tax: Occupancy tax on lodging facilities in Buncombe County, set at 6 percent, funds
further development of travel and tourism projects. One-quarter of the revenues can be used to
provide financial assistance for major tourism projects in order to significantly increase patronage
of lodging facilities in Buncombe County. The county could use some of these revenues to fund
park or conservation projects if the case could be made that the project would attract tourists to
the county. Approximately $7.5 million will be available in FY2022.
• Property tax: Buncombe County could increase the countywide property tax and dedicate the
revenues to conservation and affordable housing. For example, 1 cent ($0.01/$100 in assessed
value) dedicated to conservation and affordable housing would generate roughly $4.8 million per
year at a cost of $29 for the median homeowner. Voter approval may be sought to dedicate the
funds, or the County Commission may raise the tax rate within statutory limits and allocate the
funds annually through the budget process.
• Sales tax: Buncombe County’s FY2022 sales tax revenue estimate is $36 million. There is no
capacity to increase the local sales tax in Buncombe County for conservation or affordable
housing, as the county is already at the maximum rate allowed. The county could use some of the
existing revenue to fund conservation or affordable housing projects.
The next steps for Buncombe County should include testing voter attitudes toward a specific set of
funding proposals. The Trust for Public Land recommends conducting a public opinion survey that tests
ballot language, tax tolerance, and program priorities of voters throughout the county.

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BUNCOMBE COUNTY, NORTH CAROLINA | CONSERVATION FINANCE FEASIBILITY STUDY | JANUARY 2022

OVERVIEW
Buncombe County was established in 1791 in the southwestern portion of Buncombe County
North Carolina, and its land and water resources cover 656 square miles. Population
Historically the area was Cherokee Nation land. Asheville is the county seat Asheville 94,589
and the largest of six municipalities in the county. More than 10 million Black Mountain 8,426
people visit Buncombe County each year, and tourism is one of the primary Woodfin 7,936
drivers of economic growth. In the 2020 fiscal year, the Buncombe County Weaverville 3,940
Tourism Development Authority attributed more than $392 million to Biltmore Forest 1,473
tourism-related tax revenue. Other industries also continue to make an Montreat 446
Unincorporated 152,642
impact on the local economy, including agriculture. Buncombe County is
County Total 269,452
home to at least 21 working family farms that have been in business for
Source: US Census Quickfacts
more than 100 years. As of the 2020 census, Buncombe County is home to and Census Reporter
more than 269,000 residents and continues to grow. 2

Governance
Buncombe County uses the Commission-Manager form of government. A seven-member Board of
County Commissioners governs Buncombe County. The Chair is elected separately by all the qualified
voters in Buncombe County every four years. Two commissioners are elected from each of the three
House of Representative Districts in Buncombe County to serve staggered four-year terms. Each
commissioner is required to reside in and represent one of the districts, and only the qualified voters of
that district are eligible to vote for that district seat. 3
Buncombe County Board of Commissioners
Name Seat Next Election
Brownie Newman Chair 2024
Al Whitesides District 1 2022
Terri Wells District 1 2024
Amanda Edwards District 2 2022
Jasmine Beach-Ferarra District 2 2024
Parker Sloan District 3 2024
Robert Pressley District 3 2022

Demographics
The table on the following page provides a summary of Buncombe County’s demographic information,
with North Carolina statistics for comparison.

2
Buncombe County Annual Budget Report FY2022
3
Buncombe County Comprehensive Annual Financial Report FY2020

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BUNCOMBE COUNTY, NORTH CAROLINA | CONSERVATION FINANCE FEASIBILITY STUDY | JANUARY 2022

Buncombe County Demographics


Buncombe North
Note
County Carolina
Population estimates, July 1, 2019, (V2019) 261,191 10,488,084
Population estimates base, April 1, 2010, (V2019) 238,330 9,535,751
Population Population, percent change - April 1, 2010 (estimates base) to July 1, 2019,
9.60% 10.00%
(V2019)
Population, Census, April 1, 2020 269,452 10,439,388
White alone, percent 89.40% 70.60%
Black or African American alone, percent (a) 6.30% 22.20%
American Indian and Alaska Native alone, percent (a) 0.50% 1.60%
Race & Asian alone, percent (a) 1.40% 3.20%
Hispanic
Origin Native Hawaiian and Other Pacific Islander alone, percent (a) 0.20% 0.10%
Two or More Races, percent 2.20% 2.30%
Hispanic or Latino, percent (b) 6.80% 9.80%
White alone, not Hispanic or Latino, percent 83.40% 62.60%
Median value of owner-occupied housing units, 2015-2019 $238,200 $172,500
Median gross rent, 2015-2019 $975 $907
Housing &
Families Households, 2015-2019 107,479 3,965,482
Language other than English spoken at home, percent of persons age 5
8.30% 11.80%
years+, 2015-2019
High school graduate or higher, percent of persons age 25 years+, 2015-
91.10% 87.80%
Education 2019
Bachelor's degree or higher, percent of persons age 25 years+, 2015-2019 40.10% 31.30%
Median household income (in 2019 dollars), 2015-2019 $52,207 $54,602
Income &
Per capita income in past 12 months (in 2019 dollars), 2015-2019 $32,426 $30,783
Poverty
Persons in poverty, percent 12.20% 13.60%
Source: US Census Quickfacts
Notes: (a) Includes persons reporting only one race
(b) Hispanics may be of any race, so also are included in applicable race categories

Budget 4
The total adopted operating budget for Buncombe County in fiscal year 2022 is $511,512,725. The largest
fund is the General Fund, which is the
county’s main operating fund. The
General Fund budget total is
$360,394,615, an increase of 3.8 percent
from the FY2021 amended budget. The
increase is driven by new positions,
spending on maintenance deferred by the
COVID-19 pandemic, and investment in
Buncombe 2025 Strategic Plan Goals.
The county’s largest revenue source is
the property tax, accounting for 65
percent of the General Fund.

4
Buncombe County Annual Budget Report FY2022

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The Agriculture & Land Resources Department includes Cooperative Extension and the Soil and Water
Conservation District, which per N.C. General Statute 139 carries out programs that protect soil and water
resources. The Soil and Water Conservation District (SWCD), governed by a five-member board of
elected and appointed District Supervisors, works with its core partners, residents, and others, to conserve
Buncombe County’s soil, water, and related natural resources. The county proactively works with
landowners to place conservation easements on farmland and other environmentally sensitive tracts of
land. In support of the Strategic Plan, Buncombe County will increase the investment in this program to
initiate 19 easements covering 1,000 acres. Proposed FY2022 investment in Expanding Conservation
Easements totals $750,000 (0.15 percent of the total county budget).
Recreation Services provides recreational opportunities that inspire active living, health, and wellness
through access to high quality facilities and programming. The department leverages key community
partnerships to extend the recreational opportunities available to residents. In addition to the care and
oversight of parks and swimming pools, Recreation Services is working to preserve the county’s natural
beauty and to enhance its natural resources through the development of greenways and the procurement
of open spaces. The department has an FY2022 budget of $2,045,328 (0.4 percent of the total county
budget).
The Planning and Development department oversees a variety of programs and services that facilitate
growth and development related to zoning, subdivisions, floodplain management, stormwater, erosion
control, e-911 emergency addressing coordination, inspection services, and board/commission facilitation
for the Board of Adjustment and Planning Board. Further, the department provides community
development services related to the operation of the Mountain Mobility public transportation system and
manages the Affordable Housing Services Program. Proposed FY2022 investment for new Affordable
Housing projects includes $1,461,845 plus an $850,000 commitment to the East Haven project for a total
of $2,311,845 (0.45 percent of the total county budget) transferred to the Special Projects Fund. 5

5
Buncombe County Annual Budget Report FY2022

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BUNCOMBE COUNTY, NORTH CAROLINA | CONSERVATION FINANCE FEASIBILITY STUDY | JANUARY 2022

CHOOSING A LOCAL FUNDING STRATEGY


Generally, there are three broad-based types of revenue sources available to local governments to pay for
parks and land conservation: discretionary annual spending (i.e. budget appropriation), creation of
dedicated funding streams such as voter-approved special taxes, and the issuance of bonds. These revenue
sources are also applicable to affordable housing. The financing options utilized by a community will
depend on a variety of factors such as taxing capacity, budgetary resources, voter preferences, and
political will.
While many local governments provide support for conservation programs through the budget process,
these funds often fall short of what is needed to support long-term investment in conservation. As elected
officials go through the process of making critical budgetary decisions, funding for conservation often
lags behind other public purposes and well behind what voters would support. It is often difficult to raise
taxes without an indisputable public mandate for the intended purpose.
In the Trust for Public Land’s experience, local governments that create funding through voter-approved
ballot measures often create substantially more dedicated funds for conservation as compared to their own
prior history and peer communities that have sought voter approved funds. Ballot measures provide a
tangible, dedicated means to implement a local government’s vision. With their own funding, local
governments are better positioned to leverage grants from state or federal governments or private
philanthropic partners, especially those that require matching funds. Having a predictable funding source
empowers a city, county, or special district to establish long-term conservation priorities that meet
important community goals and values.
Nationwide, a range of public financing options has been utilized by local jurisdictions to fund various
public purposes, including general obligation bonds, the local sales tax, and the property tax. Other
mechanisms have included real estate transfer taxes, impact fees, and income taxes. The ability of local
governments and special districts to establish dedicated funding sources depends upon state enabling
authority and local laws.
The three major financing options for counties in North Carolina for land conservation are general
obligation bonds, the sales tax, and the property tax. This study also includes an examination of the
occupancy tax. See Appendix B for a list of local conservation measures in North Carolina. Appendix C
contains national examples of affordable housing measures.

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Conservation Finance Ballot Measures in North Carolina


Bonds are the most common and successful conservation finance mechanism in the state, with 38 out of
43 (88 percent) passing since 2000. The approval rate for all North Carolina local conservation measures
since 2000 is 83 percent. 6
North Carolina Local Conservation Finance Measures, 2000-2021
Finance Number of Number % Total Funds Conservation Funds
Mechanism Measures Passed Passed Approved Approved
Bond 43 38 88% $1,296,165,000 $594,348,735
Sales tax 2 1 50% $32,000,000 $10,000,000
Other* 1 0 0%
Property tax 1 0 0%
Total 47 39 83% $1,328,165,000 $604,348,735
Source: The Trust for Public Land's LandVote Database, www.landvote.org.
*Advisory measure to determine if town funds including property tax should be used for parkland acquisition

6
Comprehensive data is not available for affordable housing ballot measures.

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BUNCOMBE COUNTY, NORTH CAROLINA | CONSERVATION FINANCE FEASIBILITY STUDY | JANUARY 2022

GENERAL OBLIGATION BONDS


Counties in North Carolina may issue bonds for parks, open space, and affordable housing. 7 Bonds may
be issued only if approved by a majority of voters voting on the referendum, unless the amount is less
than two-thirds of the amount by which the outstanding debt of the county was reduced in the last
preceding fiscal year. 8 Bonds must also be approved by the state Local Government Commission. 9 Bond
proceeds are limited to capital projects and may not be used for operations and maintenance purposes. 10
The Buncombe County debt policy establishes parameters for issuing and managing debt to meet capital
needs for essential county services to citizens. The policy outlines permissible debt instruments,
restrictions on debt issuance, structuring practices, and the debt issuance process. The following are just a
few of the restrictions outlined in the policy:
• Long-term debt shall not be used to finance ongoing operational expenses.
• The net direct debt shall not exceed 3 percent of the assessed valuation of the taxable property of
the county.
• Net direct debt service cannot exceed 18 percent of total Governmental Fund expenditures.
• The county shall maintain a payout ratio of at least 65 percent of all outstanding principal in ten
years and will maintain a minimum payout ratio of 55 percent or better.

Buncombe County holds an Aaa rating from Moody’s and an AAA rating from Standard & Poor’s. As of
June 30, 2021 the county had a legal debt margin of $2.9 billion under state statutes; however, under the
county’s more restrictive debt policy, the legal debt margin is $844 million. 11
Bonds raise substantial amounts of money up front, allowing a jurisdiction to make acquisitions (in fee or
with easements, with or without public access) now while land is still available. Costs are spread out over
a long-time horizon, and therefore borne by current and future beneficiaries. However, interest increases
the total cost as compared to a “pay as you go” strategy, which does not require a long-term commitment.

7
North Carolina General Statutes § 159-48
8
North Carolina General Statutes § 159-49. When a vote of the people is required. “Pursuant to Article V, Sec. 4(2) of the Constitution, the
General Assembly hereby declares that the purposes authorized by G.S. 159-48(a)(4), (6), and (7) and by G.S. 159-48(b), (c), (d), and (e)
(except purposes authorized by G.S. 159-48(b)(3), (11), (16), (22), or (23) or by G.S. 159-48(d)(2)) are purposes for which bonds may be
issued without a vote of the people, to the extent of two thirds of the amount by which the outstanding indebtedness of the issuing county,
county water and sewer district, metropolitan water district, or city was reduced in the last preceding fiscal year.”
9
North Carolina General Statutes § 159-51
10
Federal government rules governing the issuance of tax-exempt bonds limit the use of proceeds to capital purposes such that only a small
fraction of bond funds may be used for maintenance or operations of facilities. State and local laws may impose further limits.
11
Buncombe County Annual Budget Report FY2022

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BUNCOMBE COUNTY, NORTH CAROLINA | CONSERVATION FINANCE FEASIBILITY STUDY | JANUARY 2022

Issuing Debt for Conservation and Affordable Housing


Bonds are the most common finance mechanism for land conservation in North Carolina, and they are
frequently used to fund affordable housing as well. In 2016, City of Asheville voters approved bond
measures for both affordable housing (71 percent support) and parks and recreation (77 percent support).
Other examples include Charlotte’s Housing Trust Fund (HTF), which is funded from voter-approved
housing bonds and administered by Housing & Neighborhood Services' Housing Services division.
Charlotte City Council established the HTF in 2001 to provide financing to developers for affordable
housing through voter-approved housing bonds. Since that time, the HTF has created or preserved 8,952
affordable units with long-term deed restrictions and 888 shelter beds. More than 35 percent of those units
were for households earning less than 30 percent of the Area Median Income, or under $25,050 per year
for a family of four. In total, Charlotte has allocated $210 million in bonds for its Housing Trust Fund. 12
In November 2019, Durham voters approved a $95 million affordable housing bond with 76 percent voter
support. New Hanover County is considering a $50 million affordable housing bond for November 2022.
The table below illustrates the annual debt service and estimated cost per household of various levels of
general obligation bonds that could be issued for conservation and affordable housing in Buncombe
County. For instance, a $50 million bond would add about $3.7 million to the county’s annual debt
service and cost the typical homeowner in the county about $23 per year in additional property taxes for
20 years.
Buncombe County Bond Financing Estimates
Annual Tax Median Annual Cost
Bond Interest Maturity Total Taxable
Debt Required Home for Median
Issue Rate (years) Value*
Service (per $100) Value** Home
$30,000,000 4% 20 $2,207,453 $48,026,332,725 $0.0046 $294,500 $14
$40,000,000 4% 20 $2,943,270 $48,026,332,725 $0.0061 $294,500 $18
$50,000,000 4% 20 $3,679,088 $48,026,332,725 $0.0077 $294,500 $23
$60,000,000 4% 20 $4,414,905 $48,026,332,725 $0.0092 $294,500 $27
$70,000,000 4% 20 $5,150,723 $48,026,332,725 $0.0107 $294,500 $32
*Buncombe County Annual Budget Report FY2022
**Buncombe County Finance Department

The Trust for Public Land’s bond cost calculations provide a basic estimate of debt service, tax increase,
and cost to the typical homeowner in the community of potential bond issuances. Assumptions include
the following: the entire debt amount is issued in the first year and payments are equal until maturity; 20-
year maturity; and 4 percent interest rate. The property tax estimates assume that the jurisdiction would
raise property taxes to pay the debt service on bonds. The cost per household represents the maximum
estimated annual impact of increased property taxes levied to pay the debt service. The estimates do not
take into account growth in the tax base due to new construction, annexation over the life of the bonds, or
the possibility that the jurisdiction will sell bonds only as needed for specific projects, rather than all at
once. The annual debt service and cost per household are the maximum tax impacts that could occur if the
entire debt amount is issued at once. The jurisdiction’s officials, financial advisors, bond counsel and
underwriters would establish the actual terms of any bond.

12
https://charlottenc.gov/HNS/Housing/Landlords/Pages/HTF.aspx

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Implementation
North Carolina General Statutes Chapter 159, Article 4 – Local Government Bond Act details the steps
necessary to issue bonds. This section will focus on requirements for the ballot measure; the entire
procedure is included in Appendix D.
If a bond order is to take effect upon approval of the voters, the affirmative vote of a majority of those
who vote thereon shall be required. The date of a bond referendum shall be fixed by the governing board,
but shall not be more than one year after adoption of the bond order, only on a date permitted by
G.S. 163-287. The clerk shall mail or deliver a certified copy of the resolution calling a special bond
referendum to the board of elections that is to conduct it within three days after the resolution is adopted,
but failure to observe this requirement shall not in any manner affect the validity of the referendum or
bonds issued pursuant thereto. Bond referenda shall be conducted by the board of elections conducting
regular elections of the county, city, or special district. Several bond orders or other matters may be voted
upon at the same referendum. Bonds are generally required to address a single subject, so diverse uses of
funds are not combined into a single question. 13
14 days before registration deadline The clerk shall publish a notice of the referendum at least
9/30/2022
7 days before registration deadline twice. The first publication shall be not less than 14 days
10/7/2022
Registration deadline (25 days prior) 10/14/2022
and the second publication not less than seven days before
Election Day 11/8/2022
the last day on which voters may register for the referendum
(25 days before the election). The notice shall state the date of the referendum, the maximum amount of
the proposed bonds, the purpose of the bonds, a statement that taxes will or may be levied for the payment
thereof, and a statement as to the last day for registration for the referendum under the election laws then
in effect. The form of the question as stated on the ballot shall be in substantially the following words:
"Shall the order authorizing $ ______ bonds plus interest for (briefly stating the purpose) and providing
that additional taxes may be levied in an amount sufficient to pay the principal of and interest on the
bonds be approved?
[ ] YES
[ ] NO"
The board of elections shall canvass the referendum and certify the results to the governing board. The
governing board shall then certify and declare the result of the referendum and shall publish a statement
of the result once, with the following statement appended:
"Any action or proceeding challenging the regularity or validity of this bond referendum must be begun
within 30 days after
____________________________________
(date of publication)
____________________________________
(title of governing board)"
The statement of results shall be filed in the clerk's office and inserted in the minutes of the board. 14

13
Specifically, to fund parks, open space and affordable housing, three distinct bond issuances for each purpose are required. §159-48(g)
(“Bonds for two or more unrelated purposes, not of the same general class or character, shall not be authorized by the same bond order.
However, bonds for any of the purposes listed in any subdivision of any subsection of this section shall be deemed to be for one purpose and
may be authorized by the same bond order.”)
14
North Carolina General Statutes § 159-61

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BUNCOMBE COUNTY, NORTH CAROLINA | CONSERVATION FINANCE FEASIBILITY STUDY | JANUARY 2022

OCCUPANCY TAX
Occupancy tax on lodging facilities in Buncombe County, set at 6 percent, funds further development of
travel and tourism projects. Occupancy tax, net of collection fees, is transferred to the Tourism
Development Authority for expenditures authorized by state statute. The limited effect of COVID-19 on
tourism in Buncombe County coupled with the current expectations of high tourism lead to a substantially
higher budget for FY22. 15

Counties do not have general authority to levy occupancy taxes. However, many jurisdictions across the
state have received special authority from the state legislature to levy an occupancy tax. Most occupancy
taxes range from 3 to 6 percent. The only jurisdiction with a rate higher than 6 percent is Mecklenburg
County, which received an additional 2 percent authorization for NASCAR Hall of Fame financing, for a
total of 8 percent.
Buncombe County first received authorization in 1983 for a 2 percent occupancy tax. In 1985, the tax was
increased to 3 percent, in 2001 it was increased to 4 percent, and in 2015 it was increased to 6 percent.
The revenues are dedicated by statute as follows:
• 75 percent used only to further the development of travel, tourism, and conventions in the county
through state, national, and international advertising and promotion.
• 25 percent remitted to Tourism Product Development (TPD) Fund, which is overseen by the
Tourism Development Authority (TDA), to provide financial assistance for major tourism
projects in order to significantly increase patronage of lodging facilities in Buncombe County.
Additional legislation in 2020 authorizes the county to use occupancy tax proceeds in its TPD Fund to
provide grants to tourism businesses affected by Covid-19. 16
Approximately $7.5 million will be transferred to the TPD Fund in FY2022 (25 percent of $30 million),
and a portion could be used to fund park or conservation projects if the case could be made that the
project would attract tourists to the county. However, this could divert revenues currently allocated to
other purposes and would potentially necessitate cuts to other areas of the budget or create the need to
generate additional funds from other sources. There is some history of using TPD funding for park and
recreation projects including the Woodfin Blueway and Greenway and the Enka Heritage trail project.
These funds supported planning, design and construction.

15
Buncombe County Annual Budget Report FY2022
16
North Carolina Legislative Analysis Division, Occupancy Tax Overview, Updated as of May 2020

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PROPERTY TAX
The county’s largest revenue source is property tax, accounting for 65 percent Property Tax for
of the General Fund. The FY2022 budget estimate for property tax is based on Median Home
Median Home
a 99.5 percent collection rate. In total, property tax is budgeted at Value
$294,500
$233,196,662, which also includes $100,000 for prior year property tax Tax Rate per
$0.488
collection and $300,000 for property tax late payment interest. The FY2022 $100
adopted tax rate is 48.8 cents per $100 of property value. 17 The average rate Total Tax Due $1,437.16
statewide is 67.6 cents per $100.

Map source: North Carolina Association of County Commissioners

Counties in North Carolina are authorized to levy property taxes without restriction as to rate or amount
for the following purposes:
• Courts
• Debt service
• Deficits
• Elections
• Jails
• Joint Undertakings
• Schools
• Social Services

17
Buncombe County Annual Budget Report FY2022

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For other purposes, including affordable housing, open space, parks and recreation, forest protection, and
watershed improvement, counties may levy property taxes up to a combined rate of one dollar and fifty
cents ($1.50) on the one hundred dollars ($100.00) appraised value of property subject to taxation.
However, with an approving vote of the people, any county may levy property taxes for any purpose for
which the county is authorized by law to appropriate money. Any property tax levy approved by a vote of
the people shall not be counted for purposes of the rate limitation. 18

Using the Property Tax for Conservation and Affordable Housing


Buncombe County could increase the countywide property tax and dedicate the revenues to conservation
and affordable housing. The table below demonstrates the revenues and costs of various levels of property
tax in Buncombe County. For example, 1 cent ($0.01) dedicated to conservation and affordable housing
would generate roughly $4.8 million per year at a cost of $29 for the median homeowner.
Buncombe County Property Tax Estimates
Tax Rate Increase Total Taxable Annual Median Home Annual Cost for
(per $100) Value* Revenue Value** Median Home
$0.008 $48,026,332,725 $3,842,107 $294,500 $24
$0.009 $48,026,332,725 $4,322,370 $294,500 $27
$0.010 $48,026,332,725 $4,802,633 $294,500 $29
$0.011 $48,026,332,725 $5,282,897 $294,500 $32
$0.012 $48,026,332,725 $5,763,160 $294,500 $35
*Buncombe County Annual Budget Report FY2022
**Buncombe County Finance Department

Implementation
The county commissioners may call a referendum on approval of a property tax levy. The referendum
may be held at the same time as any other referendum or election, but may not be otherwise held within
the period of time beginning 30 days before and ending 10 days after any other referendum or election to
be held in the county and already validly called or scheduled by law at the time the tax referendum is
called. The referendum shall be conducted by the county board of elections. The clerk to the board of
commissioners shall publish a notice of the referendum at least twice. The first publication shall be not
less than 14 days and the second publication not less than seven days before the last day on which voters
14 days before registration deadline 9/30/2022 may register for the referendum. The notice shall state the
7 days before registration deadline 10/7/2022 date of the referendum, the purpose for which it is being
Registration deadline (25 days prior) 10/14/2022 held, and a statement as to the last day for registration for
Election Day 11/8/2022 the referendum under the election laws then in effect.
The proposition submitted to the voters shall be substantially in one of the following forms:
(1) Shall ____ County be authorized to levy annually a property tax at a rate not in excess of
____ cents on the one hundred dollars ($100.00) value of property subject to taxation for the
purpose of ____?
(2) Shall ____ County be authorized to levy annually a property tax at a rate not in excess of
that which will produce $____ for the purpose of ____?

18
North Carolina General Statutes § 153A-149

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(3) Shall ____ County be authorized to levy annually a property tax without restriction as to
rate or amount for the purpose of ____?
If a majority of those participating in the referendum approve the proposition, the board of commissioners
may proceed to levy annually a property tax within the limitations (if any) described in the proposition.
The board of elections shall canvass the referendum and certify the results to the board of commissioners.
The board of commissioners shall then certify and declare the result of the referendum and shall publish a
statement of the result once, with the following statement appended: "Any action or proceeding
challenging the regularity or validity of this tax referendum must be begun within 30 days after (date of
publication)." The statement of results shall be filed in the clerk's office and inserted in the minutes of the
board. 19
Alternatively, the County Commission may increase the property tax rate and allocate the additional
funds to conservation and affordable housing. However, the additional property tax would need to be
included in the budget each year, and the funds could be diverted or decreased in future years by new
county commissioners.

19
North Carolina General Statutes § 153A-149

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SALES TAX
North Carolina General Statutes authorize county governments to levy five local option sales and use
taxes:
• Article 39 - First One-Cent (1¢) Local Government Sales and Use Tax.
• Article 40 - First One-Half Cent (1/2¢) Local Government Sales and Use Tax.
• Article 42 - Second One-Half Cent (1/2¢) Local Government Sales and Use Tax.
• Article 43 - Local Government Sales and Use Taxes for Public Transportation.
• Article 46 - One-Quarter Cent (¼¢) County Sales and Use Tax. 20
Buncombe County levies four of these, for a total local rate of 2.25 percent:
• The one percent tax authorized in 1971 (Article 39). House Bill #507 originally designated one-
half of the proceeds of Article 39 sales tax for the School Capital Commission Fund of Buncombe
County. The sales tax proceeds designated for this Fund must be used to finance new public
school construction or improvement and renovation projects in excess of $100,000.
Senate Bill 888 ratified on June 21, 2016 rewrites Chapter 134 of the 1983 Session Law creating
the Buncombe County School Capital Fund Commission. The bill reinstated the Commission,
established membership and meeting requirements, and created the Public School Capital Needs
Fund. Prior to SB 888, one half of Article 39 sales and use tax revenue was allocated to
Buncombe County Schools and Asheville City Schools pro rata according to average daily
membership in the two school systems. SB 888 removed this distribution method and allocated
funding based on prioritization of needs.
• The one-half percent authorized in 1983 (Article 40). Thirty percent of the proceeds from this
sales tax must be spent for school capital outlay or debt service on school bonds.
• The second one-half percent authorized in 1986 (Article 42). Sixty percent of the proceeds from
this sales tax must be spent for school capital outlay or debt service on school bonds.
• The quarter cent authorized by referendum in 2011 (Article 46). The proceeds of the quarter cent
sales tax are designated for Asheville-Buncombe Technical Community College and are
accounted for in the AB Tech Capital Projects Fund.
The remaining proceeds from the Article 39 (50 percent), Article 40 (70 percent), and Article 42 (40
percent) sales and use taxes are allocated among the municipalities, fire districts, and county on the ad
valorem or tax levy basis. The ad valorem basis distributes sales tax revenues based on relative property
tax levies of local government units.

20
North Carolina General Statutes Chapter 105

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*Article 44 - Local Government Hold Harmless and Allocation Provisions.

Buncombe County’s FY2022 sales tax revenue estimate is $36,344,931. 21 The only local option sales and
use tax the county is not levying is the tax for public transportation. Thus there is no capacity to increase
the local sales tax in Buncombe County for conservation or affordable housing. The county could use
some of its share of the ad valorem basis sales tax revenues to fund conservation or affordable housing
projects, however, this could divert revenues currently allocated to other purposes and would potentially
necessitate cuts to other areas of the budget or create the need to generate additional funds from other
sources.

21
Buncombe County Annual Budget Report FY2022

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ELECTION ANALYSIS
Election History
Election results can often be helpful in gauging voter support for capital projects and tolerance for public
spending. The available financing options covered in this report require voter approval. As such, an
examination of election history on similar fiscal questions can be instructive. Still, past election results are
not necessarily indicative of current voter sentiment on public financing, nor on a particular proposal. The
Trust for Public Land recommends engaging a professional pollster to conduct a public opinion survey
that tests ballot language, tax tolerance, and program priorities of Buncombe County voters.
Voters in Buncombe County have approved several fiscal ballot measures over the past ten years.
Asheville and Woodfin voters have approved bonds for parks and recreation and affordable housing.
Voters countywide approved $2 billion in state bonds, which included $100 million for state parks, with
71 percent support.
Buncombe County Election History, 2011-2021
Election % Yes within % Yes
Description
Date Buncombe County Statewide
NC constitutional amendment lowering the maximum allowable state
11/6/2018 41.5% 57.4%
income tax rate from 10 percent to 7 percent
11/8/2016 Asheville $32 million Streets, Sidewalks and Bike Lanes Bonds 75.8%
11/8/2016 Asheville $25 million Housing Bonds 71.2%
11/8/2016 Asheville $17 million Parks and Recreation Bonds 77.0%
11/8/2016 Woodfin $4.5 million Parks and Recreation Bonds 71.5%
NC $2 billion Public Improvement Bond (including $100 million for State
3/15/2016 71.3% 65.6%
Parks)
11/8/2011 Buncombe County 0.25% sales and use tax for educational facilities 50.8%

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Voter Registration and Turnout


As of December 2021, Buncombe County had 203,254 registered voters, of which 37 percent are
registered Democrats and 23 percent are registered Republicans. 22
Buncombe County Registered Voters
Party Voters % of Total
Democratic 75,330 37%
Republican 45,806 23%
Other/Unaffiliated 82,118 40%
Total 203,254 100%

The chart and table below show voter turnout for every election in Buncombe County since 2014.
Turnout is highest for presidential elections.

Buncombe County Voter Turnout


90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

5/6/2014 11/4/2014 10/6/2015 11/3/2015 3/15/2016 6/7/2016 11/8/2016 10/10/2017 11/7/2017 5/8/2018 11/6/2018 11/5/2019 3/3/2020 11/3/2020 11/2/2021
15.01% 46.69% 12.82% 17.00% 42.22% 11.18% 70.95% 16.58% 23.25% 15.82% 60.41% 5.09% 42.11% 78.26% 19.84%

22
North Carolina State Board of Elections

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APPENDICES

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Appendix A: Revenue Options Summary


Revenue Options Summary
Finance
Description Implementation Comments
Mechanism
Bonds raise substantial amounts of money up front,
allowing a jurisdiction to make acquisitions (in fee or
with easements, with or without public access) now
while land is still available.
Counties in North Carolina may issue
May not be used for operations and maintenance.
bonds for parks, open space, and
affordable housing. In Buncombe County,
Costs would be spread out over a long-time horizon,
General for instance, a $50 million bond would add
Voter approval and therefore borne by current and future
Obligation about $3.7 million to the county’s annual
required. beneficiaries.
(GO) Bonds debt service and cost the typical
homeowner in the county about $23 per
Interest increases the total cost.
year in additional property taxes for 20
years.
Bonds are typically repaid from property taxes, which
are usually somewhat regressive (less equitable),
although far less regressive than sales taxes. The
impact can be mitigated by incorporating homestead
exemptions and low-income property tax credits.
Occupancy tax on lodging facilities in
Buncombe County, set at 6 percent, funds
further development on travel and tourism.
One-quarter of the revenues can be used There is a nexus between tourism and recreational
to provide financial assistance for major opportunities.
tourism projects in order to significantly Allocation by
Occupancy
increase patronage of lodging facilities in County Would divert revenues currently allocated to other
Tax
Buncombe County. The county could use Commissioners. purposes.
some of these revenues to fund park or
conservation projects if the case could be Funds come from visitors, rather than residents.
made that the project would attract tourists
to the county. Approximately $7.5 million
will be available in FY2022.
Can be used for capital projects as well as operations
and maintenance.

Property taxes are usually somewhat regressive (less


Buncombe County could increase the equitable), although far less regressive than sales
Voter approval
countywide property tax and dedicated the taxes. The impact can be mitigated by incorporating
required to
revenues to conservation and affordable homestead exemptions and low-income property tax
dedicate. County
housing. For example, 1 cent dedicated to credits.
Property Tax Commission can
conservation and affordable housing
also increase rate
would generate roughly $4.8 million per Would require a pay-as-you-go approach to financing,
and allocate funds
year at a cost of $29 for the median or wait to save enough funds for a large project.
annually.
homeowner.
Without voter approval to dedicate the property tax,
the increased levy would have to be approved every
year by the County Commission when setting the
county’s property tax rate for the following year.
Sales tax revenues can fluctuate significantly with
changing economic conditions.
Buncombe County’s FY2022 sales tax
revenue estimate is $36 million. There is Would divert revenues currently allocated to other
no capacity to increase the local sales tax purposes.
Allocation by
in Buncombe County for conservation or
Sales Tax County
affordable housing. The county could use A portion of the revenue comes from visitor and
Commissioners.
some of the existing revenue to fund business spending.
conservation or affordable housing
projects. Sales taxes are very regressive (much less equitable).
The impact can be mitigated by exempting basic
necessities such as food and medications.

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Appendix B: North Carolina Local Conservation Finance Measures


North Carolina Local Conservation Finance Measures, 1999-2021
Total Funds Conservation
Jurisdiction Date Description Status % Yes
Approved Funds Approved
Bond to acquire and improve parks
Apex 11/2/2004 $13,000,000 $13,000,000 Pass 86%
and recreational facilities
Bond for park development and
Apex 11/7/2017 $48,000,000 $1,340,000 Pass 76%
greenways
Question, Bond for open space,
natural areas, greenways,
Asheville 5/12/1999 Fail 47%
easements, playgrounds, parks,
recreation
Asheville 11/8/2016 Bond for parks and recreation $17,000,000 $2,000,000 Pass 77%
Bond for parks and recreation
Belmont 11/6/2007 $12,000,000 $2,700,000 Pass 69%
including land acquisition

Bond for Sidewalks and Greenways,


Carrboro 11/4/2003 $4,600,000 $230,000 Pass 73%
Bond for sidewalks, greenways, parks

Bond for improving, expanding, and


Cary 4/8/2003 acquiring parks, greenways, $30,000,000 $15,000,000 Pass 56%
recreation centers
Bond to preserve natural resources
Cary 5/3/2005 including open space, wildlife, and $10,000,000 $10,000,000 Pass 75%
watershed protection
Cary 10/8/2019 Bond for parks and open space $112,000,000 $21,500,000 Pass 77%
Bond to purchase 56 acres for a
Cedar Point 11/6/2018 $2,500,000 $2,500,000 Pass 69%
public park
Chapel Hill 11/4/2003 Bond for land acquisition, open space $2,000,000 $2,000,000 Pass 76%
Bond for trails and greenways
Charlotte 11/8/2016 $55,000,000 $25,000,000 Pass 78%
including the Carolina Thread Trail
.25 percent sales tax increase for
Chatham
3/3/2020 farmland, parks, and other county $32,000,000 $10,000,000 Pass 51%
County
needs
Clayton 5/6/2008 Bond for parks and recreation $4,000,000 $2,000,000 Pass 74%
Cornelius 5/2/2000 Bond for parks and recreation $3,000,000 $1,500,000 Pass 72%
Davidson 11/7/2017 Bond for greenways and trails $5,000,000 $1,500,000 Pass 67%
Fuquay- Bond to purchase parks and
5/8/2007 $2,000,000 $2,000,000 Pass 79%
Varina recreational lands
Bond issue to acquire and improve
Garner 11/7/2000 $3,500,000 $3,500,000 Pass 68%
land for public parks
Bond for parks and recreational
Gastonia 5/4/2010 Fail 49%
improvements
Bond issue for parks and recreational
Greensboro 11/7/2000 $34,200,000 $34,200,000 Pass 69%
facilities
Bond for the acquisition of new
Greensboro 11/7/2006 parkland and improvements to $5,000,000 $2,400,014 Pass 62%
existing parks
Guilford Bond issue for parks acquisition and
5/2/2000 $10,000,000 $10,000,000 Pass 62%
County development, and recreation

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Bond for parks, greenways,


Guilford
11/2/2004 watershed protection, and open $20,000,000 $10,000,000 Pass 55%
County
space
Guilford Bond for park development and
5/6/2008 Fail 48%
County greenways
Harrisburg 11/7/2017 Bond for parks and recreation Fail 39%
Bond for park acquisition and
Holly Springs 11/8/2011 $20,000,000 $8,500,000 Pass 59%
improvements
Huntersville 11/4/2003 Bond for parks, recreation, streets $6,000,000 $3,000,000 Pass 69%
Advisory measure to determine if
Town funds including property tax
Lewisville 11/6/2007 Fail 44%
should be used for parkland
acquisition
Matthews 11/2/2004 Bond for parks and greenways $5,000,000 $5,000,000 Pass 67%
Land Purchase Bonds, Bond for open
Mecklenburg
11/2/1999 space, schools, other county $220,000,000 $106,000,000 Pass 61%
County
purposes
Mecklenburg Parks and Recreation Facilities Bond,
11/2/1999 $52,000,000 $16,000,000 Pass 69%
County Bond for parks, recreation
Mecklenburg Bond to improve parks and provide
11/2/2004 $69,000,000 $44,000,000 Pass 63%
County recreational facilities
Bond for the purchase of land to
Mecklenburg protect the Mountain Island Lake
11/8/2005 Fail 47%
County watershed and for a community
college and public school purposes
Mecklenburg
11/6/2007 Bond for the purchase of open space $35,640,000 $33,990,000 Pass 64%
County
Mecklenburg Bond for parks, recreation, and land
11/4/2008 $250,000,000 $60,000,000 Pass 62%
County acquisition
Mecklenburg .25 percent sales tax for arts and
11/5/2019 Fail 43%
County parks
Bond to acquire and construct new
Morrisville 11/2/2004 parks and recreational facilities and $4,000,000 $4,000,000 Pass 78%
expand existing parks
Morrisville 11/2/2021 Bond for parks and recreation $17,300,000 $7,300,000 Pass 67%
Bond for improving and acquiring
Mount Holly 6/3/2003 $2,300,000 $1,150,000 Pass 62%
parks, open space, greenways, trails
New Hanover $45 million bond issue for open space
5/2/2000 Fail 41%
County acquisition and recreation
Bond for parks and recreation
New Hanover
5/2/2006 improvements including the purchase $35,500,000 $10,700,000 Pass 67%
County
of recreational lands
Orange Bond to purchase land and
11/6/2001 $20,000,000 $20,000,000 Pass 67%
County easements for watershed protection
Parks and Recreation Bonds, Bond
Raleigh 10/7/2003 $47,250,000 $47,250,000 Pass 69%
for parks, greenways
Bond for park acquisition and
Raleigh 10/9/2007 $88,600,000 $39,888,721 Pass 72%
greenway improvements
Bond for parks and recreational
Raleigh 11/4/2014 $91,775,000 $10,000,000 Pass 68%
facilities

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20-year, 2 cent per $100 property tax


to fund a variety of long term
Randolph
11/2/2004 recreation needs, including land Fail 32%
County
acquisition and district park
development

Bond issue for acquisition of open


Wake County 11/7/2000 $15,000,000 $15,000,000 Pass 77%
space
Bond for open space, recreation, and
Wake County 11/2/2004 for the protection of water quality and $26,000,000 $26,000,000 Pass 75%
wildlife habitats
Wake County 10/9/2007 Bond for open space preservation $50,000,000 $50,000,000 Pass 71%
Bond for park improvements,
Wake County 11/6/2018 greenways, recreation and open $120,000,000 $46,200,000 Pass 68%
space
Source: The Trust for Public Land's LandVote Database, www.landvote.org.

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Appendix C: National Examples of Local Affordable Housing Measures


November 2018 Local Affordable Housing Ballot Measures
Jurisdiction Name Description Status
Prop 422 will allow the Flagstaff City Council to issue and sell general obligation bonds
in the amount of $25 million to increase the number of affordable housing units and
Flagstaff, AZ Failed, 47-52%
issue grants/loans to residents to afford those units. Will allow for construction,
rehabilitation, redevelopment and acquisition of land.

A parcel tax on commercial office space over 25,000 square feet. It would raise an
East Palo Alto, CA estimated $1.675 million dedicated to job training opportunities specific to STEM and Passed, 76-23%
for the construction of new affordable housing.

Gross receipts tax on businesses with income above $50 million. The measure will
San Francisco, CA raise an estimated $300 million annually in dedicated funds for affordable housing, Passed, 60-40%
wrap around services for the chronically homeless, and legal assistance programs.
A vacancy tax, which would raise an estimated $10 million annually in dedicated funds
Oakland, CA Passed, 68-31%
some of which may be used for housing and homeless programs.
A real estate transfer tax, would raise an estimated $8 million annual revenue, some of
Oakland, CA Passed, 66-33%
which may be used for housing and homeless programs.
$140 million general obligation bond that will provide affordable housing for local
Failed (2/3
workers, including teachers, healthcare workers, service workers, and farmworkers, as
Santa Cruz, CA majority needed),
well as vulnerable populations, including people experiencing homelessness, veterans,
52-47%
seniors, people with disabilities, and those suffering from mental or addiction illnesses.
$135 million general obligation bond that will create more affordable housing options
and opportunities for low income families and residents and for Berkeley’s most
Berkeley, CA vulnerable populations, including veterans, seniors, local artists, the disabled, current Passed, 75-24%
or former foster youth, abuse victims, homeless people, and people suffering from
mental health or substance abuse
A real estate transfer tax which would raise an estimated $6 million annual revenue,
Berkeley, CA Passed, 70-29%
some of which may be used for homeless services and programs.
$450 million general obligation bond that will create more affordable housing for
Failed (2/3
working families, veterans, teachers, nurses, seniors, people with disabilities. The
San Jose, CA majority needed),
measure seeks to help chronically homeless residents get back on their feet and
61-39%
access to a safe and stable home.
Hotel tax that will raise nearly $5 million annually in dedicated funds for affordable
housing and homelessness programs. This measure will appear as Measure I in
Napa County, CA unincorporated areas of the County, as Measure F in Napa, Measure H in American Passed, 66-33%
Canyon, Measure D in Calistoga, Measure E in St. Helena, and Measure S in
Yountville.
$124 million general obligation bond that will create more affordable housing for local
workers, including teachers, healthcare workers, and farmworkers, as well as
Santa Rosa, CA vulnerable populations, including people experiencing homelessness, veterans, Passed, 58-41%
seniors, people with disabilities. The measure also includes programs to help displaced
families rebuild after last year’s devastating fires.
A business license tax or “head tax” that would impose a tax in the range of $8 and
$149 per employee on average, with larger companies paying greater amounts. The
Mountain View, CA Passed, 69-30%
tax, if approved, would generate an approximate $6 million annually to the city general
fund, some of which may go to housing.
A special parcel tax on vacant properties that would raise an estimated $5.4 million Failed (2/3
Richmond, CA annually for 20 years to fund homelessness services and housing, blight and dumping majority needed),
elimination, and other specified programs. 58-41%
A sales tax renewal that would raise an estimated $50 million annually for the general
Santa Clara, CA Passed, 72-27%
fund, some of which may be used for housing and homeless programs
A hotel tax that would raise an estimated $1.3 million annual revenue dedicated to fire
West Marin, CA Passed, 73-26%
and emergency services and long-term community housing.

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Telluride, CO Increase levy on property taxes to fund and finance affordable housing. Passed, 51-48%
Increase sales and use tax to fund and finance the construction of affordable housing
Telluride, CO Failed, 49-50%
units.
Increase town debt to fund affordable housing and use revenue from levied property
Telluride, CO Passed, 52-47%
tax to pay debt.
Charlotte, NC Increase the city’s affordable housing trust fund from $15 million to $50 million Passed, 68-31%
The measure, proposed by Oregon’s Metro Council regional agency, could fund the
construction, acquisition and renovation of affordable housing for approximately 7,500
to 12,000 people in the greater Portland region. The measures defines affordable
Portland, OR Passed, 59-41%
housing as land and improvements for residential units occupied by low-income
households making 80 percent or less of area median income, which in 2018 for a
family of four was $65,120. $652.8 million funding allocation amount
$250 million bond for affordable rental housing, homeownership programs, home
Austin, TX Passed, 73-27%
repairs and acquiring land for future use.
Would fund production and preservation of homes, rental assistance programs, support
Bellingham, WA Passed, 66-33%
services, and down payment assistance programs for low income households.
The County would collect 0.5% of the selling price for county owned real estate. Funds
San Juan County, WA would be allocated to different organizations to develop and preserve affordable rental Passed, 54-45%
and homeownership programs.
Source: National Low Income Housing Coalition, https://nlihc.org/sites/default/files/Housing-Ballots_Initiatives.pdf
(NLIHC Ballot Tracker has not been updated since 2018.)

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Appendix D: Local Government Bond Act – Procedure for Issuing Bonds


North Carolina General Statutes, Chapter 159, Article 4
Part 2. Procedure for Issuing Bonds.
§ 159-50. Notice of intent to make application for issuance of voted bonds; objection by citizens and
taxpayers.
When a unit of local government proposes to issue bonds that must be approved by a vote of the people,
it shall first publish a notice of its intent to make application to the Commission for approval of the issue.
The notice shall be published once not less than 10 days before the application is filed. The notice shall
state (i) that the board intends to file an application with the Commission for approval of a bond issue, (ii)
in brief and general terms the purpose of the proposed issue, (iii) the maximum amount of bonds to be
issued, and (iv) that any citizen or taxpayer of the issuing unit may, within seven days after the date of the
publication, file with the governing board and the Commission a statement of any objections he may have
to the issue. The Commission may prescribe the form of the notice.
Any citizen or taxpayer of the issuing unit who objects to the proposed bond issue in whole or in part
may, within seven days from the date of publication of the notice, file a written statement of his objections
with the board and the Commission. The statement shall set forth each objection to the proposed bond issue
and shall contain the name and address of the person filing it. The Commission shall consider the statement
of objections along with the application and shall notify the objector and the board of its disposition of each
objection.
Failure to comply with this section shall not affect the validity of any bonds otherwise issued in
accordance with the law. This section shall not apply to bonds that need not be submitted to a vote of the
people. (1953, c. 1121; 1971, c. 780, s. 1.)

§ 159-51. Application to Commission for approval of bond issue; preliminary conference; acceptance
of application.
No bonds may be issued under this Article unless the issue is approved by the Local Government
Commission. The governing board of the issuing unit shall file an application for Commission approval of
the issue with the secretary of the Commission. If the issuing unit is a regional public transportation
authority, the application must be accompanied by resolutions of the special tax board of that authority and
of each of the boards of county commissioners of the counties organizing the authority approving of the
application. The application shall state such facts and have attached to it such documents concerning the
proposed bonds and the financial condition of the issuing unit as the secretary may require. The Commission
may prescribe the form of the application.
Before he accepts the application, the secretary may require the governing board or its representatives
to attend a preliminary conference to consider the proposed bond issue. If the issuing unit is a merged school
administrative unit described in G.S. 115C-513, each county in which the merged unit is located may attend
the preliminary conference.
After an application in proper form has been filed, and after a preliminary conference if one is required,
the secretary shall notify the unit in writing that the application has been filed and accepted for submission
to the Commission. The secretary's statement shall be conclusive evidence that the unit has complied with
this section. (1953, c. 1121; 1971, c. 780, s. 2; 1989, c. 740, s. 5; 1991, c. 325, s. 6, c. 666, s. 6.)

§ 159-52. Approval of application by Commission.


(a) In determining whether a proposed bond issue shall be approved, the Commission may consider:

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(1) Whether the project to be financed from the proceeds of the bond issue is necessary or
expedient.
(2) The nature and amount of the outstanding debt of the issuing unit.
(3) The unit's debt management procedures and policies.
(4) The unit's tax and special assessments collection record.
(5) The unit's compliance with the Local Government Budget and Fiscal Control Act.
(6) Whether the unit is in default in any of its debt service obligations.
(7) The unit's present tax rates, and the increase in tax rate, if any, necessary to service the
proposed debt.
(8) The unit's appraised and assessed value of property subject to taxation.
(9) The ability of the unit to sustain the additional taxes necessary to service the debt.
(10) The ability of the Commission to market the proposed bonds at reasonable interest
rates.
(11) If the proposed issue is for a utility or public service enterprise, the probable net
revenues of the project to be financed and the extent to which the revenues of the utility
or enterprise, after addition of the revenues of the project to be financed, will be
sufficient to service the proposed debt.
(12) Whether the amount of the proposed debt will be adequate to accomplish the purpose
for which it is to be incurred.
(13) If the proposed bond issue is for a water system as described in G.S. 159-48(b)(21),
whether a unit has prepared a local water supply plan in compliance with G.S. 143-
355.
The Commission may inquire into and give consideration to any other matters which it may believe to have
a bearing on whether the issue should be approved.
(b) The Commission shall approve the application if, upon the information and evidence it receives,
it finds and determines:
(1) That the proposed bond issue is necessary or expedient.
(2) That the amount proposed is adequate and not excessive for the proposed purpose of
the issue.
(3) That the unit's debt management procedures and policies are good, or that reasonable
assurances have been given that its debt will henceforth be managed in strict
compliance with law.
(4) That the increase in taxes, if any, necessary to service the proposed debt will not be
excessive.
(5) That the proposed bonds can be marketed at reasonable rates of interest.
If the Commission tentatively decides to deny the application because it is of the opinion that any one
or more of these conclusions cannot be supported from the information presented to it, it shall so notify the
unit filing the application. If the unit so requests, the Commission shall hold a public hearing on the
application at which time any interested persons shall be heard. The Commission may appoint a hearing
officer to conduct the hearing, and to present a summary of the testimony and his recommendations for the
Commission's consideration. (1931, c. 60, ss. 12, 13; 1971, c. 780, s. 1; 2011-374, s. 3.3.)

§ 159-53. Order approving or disapproving an application.


(a) After considering an application, and conducting a public hearing thereon if one is requested
under G.S. 159-52(b), the Commission shall enter its order either approving or denying the application. An
order approving an issue shall not be regarded as an approval of the legality of the bonds in any respect.

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(b) If the Commission shall enter an order denying an application, the proceedings under this
Subchapter shall be at an end. (1931, c. 60, s. 14; 1971, c. 780, s. 1.)

§ 159-54. The bond order.


After or at the same time the application is filed with the Commission, a bond order shall be introduced
before the governing board of the issuing unit. The bond order shall state:
(1) Briefly and generally and without specification of location or material of construction,
the purpose for which the bonds are to be issued, but not more than one purpose may
be stated. For funding or refunding bonds a brief description of the debt, judgment, or
obligation to be funded or refunded shall be sufficient.
(2) The maximum aggregate principal amount of the bonds.
(3) That taxes will be levied in an amount sufficient to pay the principal and interest of the
bonds.
(4) The extent, if any, to which utility or enterprise revenues are, or may be, pledged to
payment of interest on and principal of the bonds pursuant to G.S. 159-47.
(5) That a sworn statement of debt has been filed with the clerk and is open to public
inspection.
(6) If the bonds are to be approved by the voters, that the bond order will take effect when
approved by the voters.
(7) If the bonds are issued pursuant to G.S. 159-48(a)(1), (2), (3), or (5), that the bond order
will take effect upon its adoption. If the bonds are to be issued pursuant to G.S. 159-
48(a)(4), (6), or (7) or G.S. 159-48(b), (c), or (d) and are not to be submitted to the
voters, that the bond order will take effect 30 days after its publication following
adoption, unless it is petitioned to a vote of the people as provided in G.S. 159-60, and
that in that event the order will take effect when approved by the voters.
When the bond order is introduced, the board shall fix the time and place for a public hearing
thereon. (1917, c. 138, s. 17; 1919, c. 178, s. 3(17); c. 285, s. 2; C.S., s. 2938; 1921, c. 8, s. 1; Ex. Sess.
1921, c. 106, s. 1; 1927, c. 81, s. 9; 1931, c. 60, ss. 49, 55; 1933, c. 259, ss. 1, 2; 1935, c. 302, ss. 1, 2; 1949,
c. 497, ss. 1, 3; 1957, c. 856, s. 2; 1971, c. 780, s. 1; 1973, c. 494, s. 6; 2012-156, s. 2.)

§ 159-55. Sworn statement of debt; debt limitation; statement of estimated interest on the bonds.
(a) After the bond order has been introduced and before the public hearing thereon, the finance
officer (or some other officer designated by the governing board for this purpose) shall file with the clerk a
statement showing the following:
(1) The gross debt of the unit, excluding therefrom debt incurred or to be incurred in
anticipation of the collection of taxes or other revenues or in anticipation of the sale of
bonds other than funding and refunding bonds. The gross debt (after exclusions) is the
sum of (i) outstanding debt evidenced by bonds, (ii) bonds authorized by orders
introduced but not yet adopted, (iii) unissued bonds authorized by adopted orders, and
(iv) outstanding debt not evidenced by bonds. However, for purposes of the sworn
statement of debt and the debt limitation, revenue bonds and project development
financing debt instruments (unless additionally secured by a pledge of the issuing unit's
faith and credit) shall not be considered debt and shall not be included in gross debt
nor deducted from gross debt.
(2) The deductions to be made from gross debt in computing net debt. The following
deductions are allowed:

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a. Funding and refunding bonds authorized by orders introduced but not yet
adopted.
b. Funding and refunding bonds authorized but not yet issued.
c. The amount of money held in sinking funds or otherwise for the payment of
any part of the principal of gross debt other than debt incurred for water, gas,
electric light or power purposes, or sanitary sewer purposes (to the extent that
the bonds are deductible under subsection (b) of this section), or two or more
of these purposes.
d. The amount of bonded debt included in gross debt and incurred, or to be
incurred, for water, gas, or electric light or power purposes, or any two or more
of these purposes.
e. The amount of bonded debt included in the gross debt and incurred, or to be
incurred, for sanitary sewer system purposes to the extent that the debt is made
deductible by subsection (b) of this section.
f. The amount of uncollected special assessments theretofore levied for local
improvements for which any part of the gross debt (that is not otherwise
deducted) was or is to be incurred, to the extent that the assessments will be
applied, when collected, to the payment of any part of the gross debt.
g. The amount, as estimated by the governing board of the issuing unit or an
officer designated by the board for this purpose, of special assessments to be
levied for local improvements for which any part of the gross debt (that is not
otherwise deducted) was or is to be incurred, to the extent that the special
assessments, when collected, will be applied to the payment of any part of the
gross debt.
(3) The net debt of the issuing unit, being the difference between the gross debt and
deductions.
(4) The assessed value of property subject to taxation by the issuing unit, as revealed by
the tax records and certified to the issuing unit by the assessor. In calculating the
assessed value, the incremental valuation of any development financing district located
in the unit, as determined pursuant to G.S. 159-107, shall not be included.
(5) The percentage that the net debt bears to the assessed value of property subject to
taxation by the issuing unit.
(b) Debt incurred or to be incurred for sanitary sewer system purposes is deductible from gross debt
when the combined revenues of the water system and the sanitary sewer system (whether or not the water
and sewer system are operated separately or as a consolidated system) were sufficient to pay all operating,
capital outlay, and debt service expenditures attributable to both systems in each of the three complete fiscal
years immediately preceding the date on which the sworn statement of debt is filed. For the purposes of this
subsection, the "revenues" of a water system and a sanitary sewer system include:
(1) Rates, fees, rentals, charges, and other receipts and income derived from or in
connection with the system.
(2) Fees, rents, or other charges collected from other offices, agencies, institutions, and
departments of the issuing unit at rates not in excess of those charged to other
consumers, customers, or users.
(3) Appropriations from the fund balance of the prior fiscal year from the fund or funds
established to account for the revenues and expenditures of the water system or sewer
system pursuant to G.S. 159-13(a) of the Local Government Budget and Fiscal Control
Act.

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Before the sworn statement of debt is filed, the secretary shall determine to what extent debt incurred or to
be incurred for sanitary sewer system purposes qualifies for deduction from gross debt pursuant to this
subsection, and shall give his certificate to that effect. The secretary's certificate shall be filed with and
deemed a part of the sworn statement of debt. The secretary's certificate shall be conclusive in the absence
of fraud.
(c) No bond order shall be adopted unless it appears from the sworn statement of debt filed in
connection therewith that the net debt of the unit does not exceed eight percent (8%) of the assessed value
of property subject to taxation by the issuing unit. This limitation shall not apply to:
(1) Funding and refunding bonds.
(2) Bonds issued for water, gas, or electric power purposes, or two or more of these
purposes.
(3) Bonds issued for sanitary sewer system purposes when the bonds are deductible
pursuant to subsection (b) of this section.
(4) Bonds issued for sanitary sewers, sewage disposal, or sewage purification plants when
the construction of these facilities has been ordered by the Environmental Management
Commission, which Commission is hereby authorized to make such an order, or by a
court of competent jurisdiction.
(5) Bonds or notes issued for erosion control purposes.
(6) Bonds or notes issued for the purpose of erecting jetties or other protective works to
prevent encroachment by the ocean, sounds, or other bodies of water.
(d) At the time the bond order is introduced, the finance officer (or some other officer designated
by the governing board for this purpose) shall file with the clerk a statement of the finance officer estimating
the total amount of interest that will be paid on the bonds over the expected term of the bonds, if issued,
and a summary of the assumptions upon which the estimate is based. The statement shall include a statement
to the effect that the amount estimated is preliminary and is for general informational purposes only, that
there is no assurance that the assumptions upon which the estimate is based will occur, that the occurrence
of certain of the assumptions is beyond the control of the unit, and that differences between the actual
circumstances at the time the bonds are issued from the assumptions included in the estimate could result
in significant differences between the estimated interest and the actual interest on the bonds. The statement
may include other qualifications as the finance officer deems appropriate. The validity of the bonds
authorized by the order is not subject to challenge on the grounds that the actual interest cost of the bonds
when issued is different than the amount set forth in the statement. The statement shall be filed with the
Local Government Commission and maintained by the Clerk. (1917, c. 138, s. 19; 1919, c. 178, s. 3(19);
c. 285, s. 4; C.S., s. 2943; 1921, c. 8, s. 1; Ex. Sess. 1921, c. 106, s. 1; 1927, c. 81, ss. 13, 14; c. 102, s. 1;
1931, c. 60, s. 51; 1933, c. 259, s. 1; c. 321; Ex. Sess. 1938, c. 3; 1955, c. 1045; 1959, c. 779, s. 10; 1967,
c. 892, s. 4; 1969, c. 1092; 1971, c. 780, s. 1; 1973, c. 494, s. 7; c. 1262, s. 231; 1991, c. 11, ss. 2, 3; 1991
(Reg. Sess., 1992), c. 1007, s. 41; 2003-403, s. 4; 2013-200, s. 1.)

§ 159-56. Publication of bond order as introduced.


After the introduction of the bond order, the clerk shall publish it once with the following statement
appended:
"The foregoing order has been introduced and a sworn statement of debt has been filed under the Local
Government Bond Act showing the appraised value of the [issuing unit] to be $ ______ and the net debt
thereof, including the proposed bonds, to be $ ______. The finance officer of the [issuing unit] has filed a
statement estimating that the total amount of interest that will be paid on the bonds over the expected term
of the bonds, if issued, is $ ______. The estimate is preliminary, is for general informational purposes only,
and may differ from the actual interest paid on the bonds. A tax will [may] be levied to pay the principal of

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and interest on the bonds if they are issued. Anyone who wishes to be heard on the questions of the validity
of the bond order and the advisability of issuing the bonds may appear at a public hearing or an adjournment
thereof to be held at ________.
__________________________________________
Clerk"
The publication may include a summary of the assumptions upon which the estimate of the total amount
of interest that will be paid on the bonds over the expected term of the bonds, if issued, is based, and may
further state that there is no assurance that the circumstances included in the assumptions will occur, that
the occurrence of certain of the assumptions is beyond the control of the issuing unit, and that differences
between the actual circumstances at the time the bonds are issued from the assumptions included in the
estimate could result in significant differences between the estimated interest and the actual interest on the
bonds. The statement may include additional qualifications as the unit deems appropriate. The validity of
bonds authorized to be issued pursuant to this act is not subject to challenge on the grounds that the actual
interest cost of the bonds when issued is different than the amount set forth in the estimate referenced in
the publication of the bond order as introduced. (1927, c. 81, s. 16; 1971, c. 780, s. 1; 2013-200, s. 2.)

§ 159-56.1. Certain proceedings ratified notwithstanding provisions of § 159-56.


All proceedings heretofore taken by the governing boards of units of local government in connection
with the authorization of bonds are hereby ratified, approved, confirmed and in all respects validated,
notwithstanding the provisions of G.S. 159-56; provided that the issuance of said bonds, the indebtedness
to be incurred by the issuance thereof and the levy of a tax for the payment thereof shall have been approved
at an election by a majority of the qualified voters of the unit voting thereon. (1973, c. 1172.)

§ 159-57. Hearing; passage of bond order.


On the date fixed for the public hearing, which shall be not earlier than six days after the date of
publication of the bond order as introduced, the board shall hear anyone who may wish to be heard on the
question of the validity of the order or the advisability of issuing the bonds. The hearing may be adjourned
from time to time.
After the hearing, (and on the same day as the hearing, if the board so desires) the board may pass the
order as introduced, or as amended. No amendment may increase the amount of bonds to be issued, nor
substantially change the purpose of the issue. If the board wishes to increase the amount of bonds to be
issued, or to substantially change the purpose of the issue, a new proceeding under this Article is required.
The provisions of any city charter, general law, or local act to the contrary notwithstanding, a bond
order may be introduced at any regular or special meeting of the governing board and adopted at any such
meeting by a simple majority of those present and voting, a quorum being present, and need not be published
or subjected to any procedural requirements governing the adoption of ordinances or resolutions by the
governing board other than the procedures set out in this Subchapter. Bond orders shall not be subject to
the provisions of any city charter or local act concerning initiative and referendum. (1927, c. 81, s. 17; 1953,
c. 1065, s. 1; 1971, c. 780, s. 1.)

§ 159-58. Publication of bond order as adopted.


After adoption, the clerk shall publish the bond order once, with the following statement appended:
"The foregoing order was adopted on the ______ day of ______, ____, and is hereby published this
______ day of ______, ____. Any action or proceeding questioning the validity of the order must be begun
within 30 days after the date of publication of this notice. The finance officer of the [issuing unit] has filed
a statement estimating that the total amount of interest that will be paid on the bonds over the expected term

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of the bonds, if issued, is $ ______. The estimate is preliminary, is for general informational purposes only,
and may differ from the actual interest paid on the bonds.
__________________________________________
Clerk"
The publication may include a summary of the assumptions upon which the estimate of the total amount
of interest that will be paid on the bonds over the expected term of the bonds, if issued, is based, and may
further state that there is no assurance that the circumstances included in the assumptions will occur, that
the occurrence of certain of the assumptions is beyond the control of the issuing unit, and that differences
between the actual circumstances at the time the bonds are issued from the assumptions included in the
estimate could result in significant differences between the estimated interest and the actual interest on the
bonds. The statement may include such additional qualifications as the unit deems appropriate. The validity
of bonds authorized to be issued pursuant to this act is not subject to challenge on the grounds that the actual
interest cost of the bonds when issued is different than the amount set forth in the estimate referenced in
the publication of the bond order as adopted. (1917, c. 138, s. 20; 1919, c. 49, s. 1; c. 178, s. 3(20); C.S., s.
2944; 1921, c. 8, s. 1; Ex. Sess. 1921, c. 106, s. 1; 1927, c. 81, s. 19; 1971, c. 780, s. 1; 1999-456, s. 59;
2013-200, s. 3.)

§ 159-59. Limitation of action to set aside order.


Any action or proceeding in any court to set aside a bond order, or to obtain any other relief, upon the
ground that the order is invalid, must be begun within 30 days after the date of publication of the bond order
as adopted. After the expiration of this period of limitation, no right of action or defense based upon the
invalidity of the order shall be asserted, nor shall the validity of the order be open to question in any court
upon any ground whatever, except in an action or proceeding begun within the period of limitation
prescribed in this section. (1917, c. 138, s. 20; 1919, c. 49, s. 1; c. 178, s. 3(20); C.S., s. 2945; 1921, c. 8,
s. 1; Ex. Sess. 1921, c. 106, s. 1; 1927, c. 81, s. 20; 1971, c. 780, s. 1.)

§ 159-60. Petition for referendum on bond issue.


A petition demanding that a bond order be submitted to the voters may be filed with the clerk within
30 days after the date of publication of the bond order as introduced. The petition shall be in writing, and
shall be signed by a number of voters of the issuing unit equal to not less than ten percent (10%) of the total
number of voters registered to vote in elections of the issuing unit according to the most recent figures
certified by the Board of Elections. The residence address of each signer shall be written after his signature.
The petition need not contain the text of the order to which it refers, and need not be all on one sheet.
The clerk shall investigate the sufficiency of the petition and present it to the governing board, with a
certificate stating the results of his investigation. The governing board, after hearing any taxpayer who may
request to be heard, shall thereupon determine the sufficiency of the petition, and its determination shall be
conclusive.
This section does not apply to bonds issued pursuant to G.S. 159-48(a)(1), (2), (3), or (5). (1917, c.
138, s. 21; 1919, c. 49, ss. 1, 2; c. 178, s. 3(21); C.S., s. 2947; 1921, c. 8, s. 1; Ex. Sess. 1921, c. 106, s. 1;
1927, c. 81, s. 20; c. 102, s. 2; 1971, c. 780, s. 1; 1973, c. 494, s. 8; 2017-6, s. 3; 2018-146, ss. 3.1(a), (b),
6.1.)

§ 159-61. Bond referenda; majority required; notice of referendum; form of ballot; canvass.
(a) If a bond order is to take effect upon approval of the voters, the affirmative vote or a majority
of those who vote thereon shall be required.
(b) The date of a bond referendum shall be fixed by the governing board, but shall not be more than
one year after adoption of the bond order, only on a date permitted by G.S. 163-287. The clerk shall mail

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or deliver a certified copy of the resolution calling a special bond referendum to the board of elections that
is to conduct it within three days after the resolution is adopted, but failure to observe this requirement shall
not in any manner affect the validity of the referendum or bonds issued pursuant thereto. Bond referenda
shall be conducted by the board of elections conducting regular elections of the county, city, or special
district. Several bond orders or other matters may be voted upon at the same referendum.
(c) The clerk shall publish a notice of the referendum at least twice. The first publication shall be
not less than 14 days and the second publication not less than seven days before the last day on which voters
may register for the referendum. The notice shall state the date of the referendum, the maximum amount of
the proposed bonds, the purpose of the bonds, a statement that taxes will or may be levied for the payment
thereof, and a statement as to the last day for registration for the referendum under the election laws then
in effect.
(d) The form of the question as stated on the ballot shall be in substantially the following words:
"Shall the order authorizing $ ______ bonds plus interest for (briefly stating the purpose) and providing
that additional taxes may be levied in an amount sufficient to pay the principal of and interest on the bonds
be approved?
[ ] YES
[ ] NO"
(e) The board of elections shall canvass the referendum and certify the results to the governing
board. The governing board shall then certify and declare the result of the referendum and shall publish a
statement of the result once, with the following statement appended:
"Any action or proceeding challenging the regularity or validity of this bond referendum must be begun
within 30 days after
____________________________________
(date of publication)
____________________________________
(title of governing board)"
The statement of results shall be filed in the clerk's office and inserted in the minutes of the board. (1917,
c. 138, s. 22; 1919, c. 178, s. 3(22); c. 291; C.S., s. 2948; 1921, c. 8, s. 1; Ex. Sess. 1921, c. 106, s. 1; 1927,
c. 81, ss. 22, 23, 25-27, 29; 1949, c. 497, ss. 2, 4; 1953, c. 1065, ss. 1, 2; 1971, c. 780, s. 1; 1973, c. 494, s.
9; 2013-200, s. 4; 2013-381, s. 10.26; 2017-6, s. 3; 2018-146, ss. 3.1(a), (b), 6.1.)

§ 159-62. Limitation on actions contesting validity of bond referenda.


Any action or proceeding in any court to set aside a bond referendum, or to obtain any other relief, upon
the ground that the referendum is invalid or was irregularly conducted, must be begun within 30 days after
the publication of the statement of the results of the referendum. After the expiration of this period of
limitation, no right of action or defense based upon the invalidity of or any irregularity in the referendum
shall be asserted, nor shall the validity of the referendum be open to question in any court upon any ground
whatever, except in an action or proceeding begun within the period of limitation prescribed in this
section. (1917, c. 138, s. 22; 1919, c. 178, s. 3(22); c. 291; C.S., s. 2948; 1921, c. 8, s. 1; Ex. Sess. 1921, c.
106, s. 1; 1927, c. 81, s. 30; 1949, c. 497, s. 4; 1953, c. 1065, s. 2; 1971, c. 780, s. 1.)

§ 159-63. Repeal of bond orders.


A bond order may be repealed at any time before bonds or bond anticipation notes are issued thereunder.
No referendum is required on the repeal of any bond order, nor is a petition for any such referendum
permitted. (1971, c. 780, s. 1.)

§ 159-64. Within what time bonds may be issued.

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Bonds may be issued under a bond order at any time within seven years after the bond order takes
effect. Such period may be extended prior to the expiration of such period from seven years to 10 years as
hereinafter provided. The board of the issuing unit shall file an application for Commission approval of
such extension with the secretary of the Commission. The application shall state such facts and have
attached to it such documents concerning such extension as the secretary may require. The Commission
may prescribe the form of such application. In determining whether to approve such extension, the
Commission may inquire into and give consideration to any matters which it believes may relate to such
extension.
The Commission may enter an order approving a proposed extension of the maximum time period for
issuing bonds under a bond order from seven to 10 years if, upon the basis of the information and evidence
it receives, it finds and determines that governmental approvals relative to the purpose to be financed in
whole or in part with the proceeds of the bonds cannot be obtained within seven years after the bond order
has taken effect, that funds to be applied together with the proceeds of the bonds to finance the purpose for
which the bonds are to be issued will not be available within seven years after the bond order has taken
effect or that the proposed extension is necessary for other reasons that are not within the direct control of
the issuing unit other than any order of any court. If the Commission enters an order denying such extension,
then the proceedings under this section shall be at an end.
If the Commission enters an order approving a proposed extension of the maximum time period for
issuing bonds under a bond order as provided in this section, then the board shall fix the time and place for
a public hearing on such extension and the clerk shall publish such bond order once with the following
statement appended:
"The foregoing order took effect on________,______. Anyone who wishes to be
heard on the question of whether the maximum time period for issuing bonds under such
order should be extended from seven years to 10 years after such date may appear at a
public hearing or an adjournment thereof to be held at ______ on ______ at __________
(time) (date) (place)

____________________________________
Clerk"
On the date fixed for such hearing, which shall be not earlier than six days after the date of publication of
the bond order with appended statement as provided in this section, the board shall hear anyone who might
wish to be heard on the question of whether the maximum time period for issuing bonds under the bond
order should be extended from seven years to 10 years. The hearing may be adjourned from time to time.
After such hearing, the board may adopt an order providing that the maximum time period for issuing
bonds under the bond order has been extended from seven to 10 years after the bond order has taken effect.
Such order shall provide that it will take effect 30 days after its publication following adoption.
After adoption, the clerk shall publish once an order extending the maximum time period for issuing
bonds under a bond order with the following statement appended:
"The foregoing order was adopted on the ____ day of________,______, and is hereby
published this ____ day of________, _______. Any action or proceeding questioning the
validity of such order must be begun within 30 days after the date of publication of this
notice.
____________________________________
Clerk"
Any action or proceeding in any court to set aside an order extending the maximum time period for
issuing bonds under a bond order, or to obtain any other relief, upon the ground that such order is invalid,
must be begun within 30 days after the date of publication of such order as adopted. After the expiration of

38 | THE TRUST FOR PUBLIC LAND | CONSERVATION FINANCE DEPARTMENT


BUNCOMBE COUNTY, NORTH CAROLINA | CONSERVATION FINANCE FEASIBILITY STUDY | JANUARY 2022

this period of limitation, no right of action or defense based upon the invalidity of such order shall be
asserted nor shall the validity of such order be open to question in any court upon any ground whatever,
except in an action or proceeding begun within the period of limitation prescribed in this section.
When the issuance of bonds under any bond order is prevented or prohibited by any order of any court,
the period of time within which bonds may be issued under the bond order in litigation shall be extended
by the length of time elapsing between the date of institution of the action or proceeding and the date of its
final disposition.
When the issuance of bonds under any bond order, to finance public improvements in an area to be
annexed, is prevented or prohibited by reason of litigation respecting the annexation and the Local
Government Commission shall certify to such effect, the period of time within which bonds may be issued
under the bond order shall be extended by the length of time elapsing between the date of institution of the
litigation and the date of its final disposition.
The General Assembly may at any time prior to the expiration of the maximum time period herein
provided extend the time for issuing bonds under bond orders.
When any such extension is effected or granted pursuant to this section, no further approval of the
voters shall be required. (1917, c. 138, s. 24; 1919, c. 178, s. 3(24); C.S., s. 2950; 1921, c. 8, s. 1; Ex. Sess.
1921, c. 106, s. 1; 1927, c. 81; s. 32; 1939, c. 231, ss. 1, 2(d); 1947, c. 510, ss. 1, 2; 1949, c. 190, ss. 1, 2;
1951, c. 439, ss. 1, 2; 1953, c. 693, ss. 1, 3; 1955, c. 704, ss. 1, 2; 1969, c. 99; 1971, c. 780, s. 1; 1975, c.
545, s. 1; 1977, 2nd Sess., c. 1219, s. 36; 1979, c. 444, s. 1.)

§ 159-65. Resolution fixing the details of the bonds.


(a) After the bond order has been adopted, the board shall adopt a resolution fixing the details of
the bonds. In fixing details of the bonds, the board is subject to these restrictions and directions:
(1) The dates for payment of installments of principal shall not exceed the maximum
periods of usefulness prescribed by the Commission pursuant to G.S. 159-122.
(2) Bonds authorized by two or more bond orders may be consolidated into a single issue.
(3) Bonds of each issue shall have principal paid in annual installments, the first of which
shall be payable not more than three years after the date of the bonds, and the last
within the maximum maturity period prescribed by regulation of the Commission
under G.S. 159-122.
(4) No installment of principal for any issue may be more than four times as great in
amount as the smallest prior installment of principal for the same issue.
(5) Bonds of each issue may be issued from time to time in series with different provisions
for each series. Each series shall be deemed a separate issue for the purposes of this
section, except that two or more series may be considered to be a single issue under
subdivisions (3) and (4) of this subsection if issued on the same day or two consecutive
days.
(6) Any bond may be made payable on demand or tender for purchase as provided in G.S.
159-79, and any bond may be made subject to redemption prior to maturity, with or
without premium, on such notice and at such time or times and with such redemption
provisions as may be stated therein. When any such bond has been validly called for
redemption and provision has been made for the payment of the principal thereof, any
redemption premium, and the interest thereon accrued to the date of redemption,
interest thereon shall cease.
(7) The bonds may bear interest at such rate or rates, payable semiannually or otherwise,
may be in such denominations, and may be made payable in such kind of money and

CONSERVATION FINANCE DEPARTMENT | THE TRUST FOR PUBLIC LAND | 39


BUNCOMBE COUNTY, NORTH CAROLINA | CONSERVATION FINANCE FEASIBILITY STUDY | JANUARY 2022

in such place or places within or without the State of North Carolina, as the board may
determine.
(b) Subdivisions (a)(3) and (4) of this section do not apply to refunding bonds or to bonds purchased
by a State or federal agency. Subdivisions (a)(3) and (4) also do not apply to bonds the interest on which is
or may be includable in gross income for purposes of federal income tax, as long as the dates for payment
of principal on these bonds have been approved by the Commission. For the purposes of subdivisions (a)(3)
and (4) of this section and for bonds the interest on which is or may be includable in gross income for
purposes of federal income tax, payment of an installment of principal may be provided for by the maturity
of a bond, mandatory redemption of principal prior to maturity, a sinking fund, a credit facility as defined
in G.S. 159-79, or any other means satisfactory to the Commission. (1917, c. 138, s. 25; 1919, c. 178, s.
3(25); C.S., s. 2951; 1921, c. 8, s. 1; Ex. Sess. 1921, c. 106, s. 1; 1933, c. 259, s. 1; 1951, c. 440, s. 1; 1953,
c. 1206, s. 3; 1969, c. 686; 1971, c. 780, s. 1; 1973, c. 494, s. 10; cc. 883, 995; 1987, c. 585, s. 2; c. 586;
2003-388, s. 2.)

§ 159-66. Validation of former proceedings and actions.


(a) All proceedings and actions heretofore taken by the governing boards of units of local
government and by the Local Government Commission to fix the details of bonds and to provide for the
advertisement and sale thereof are hereby ratified, approved, confirmed and in all respects validated,
notwithstanding the provisions of G.S. 159-65(4).
(b) This section shall apply to all bonds sold by the Local Government Commission between July
1, 1973, and February 18, 1974. (1973, c. 872, ss. 1, 2.)

40 | THE TRUST FOR PUBLIC LAND | CONSERVATION FINANCE DEPARTMENT


BUNCOMBE COUNTY, NORTH CAROLINA | CONSERVATION FINANCE FEASIBILITY STUDY | JANUARY 2022

With any questions or for more information please contact:

Pegeen Hanrahan, P.E.


Southeast Conservation Finance Director
The Trust for Public Land
(352) 665-5939
Pegeen.Hanrahan@tpl.org

or

Jessica Welch
Senior Conservation Research Analyst
The Trust for Public Land
(202) 856-3828
Jessica.Welch@tpl.org

www.tpl.org

CONSERVATION FINANCE DEPARTMENT | THE TRUST FOR PUBLIC LAND | 41

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