Municipal Bond Sales

Print Feedback

Font Size: + -

RSS

Overview

The Town sells bonds to borrow money to help pay for projects such as water and sewer plants, streets, parks, fire trucks, fire stations and other Town government buildings. Borrowing for such projects enables future taxpayers to share the cost.

General obligation bonds require voters' approval. Other debt financing options include revenue bonds, certificates of participation, installment purchase contracts and state revolving loans.

Ratings

Town of Cary general obligation bonds are rated AAA -- the best possible -- by all three national credit rating agencies. These agencies generally consider revenue bonds and certificates of participation to be higher risk since taxing power is not pledged. However, all Town of Cary debt carries high ratings because of the Town's financial strength.

Financing Type	Moody's	Standard & Poor's	Fitch
General obligation bonds	Aaa	AAA	AAA
Revenue bonds	Aaa	AAA	AAA
Certificates of participation	Aa1	AA+	AA+

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

Rating symbols explanation

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

Buying Town of Cary Bonds

The N.C. Department of State Treasurer handles Town of Cary bond sales. Most bonds are sold competitively to the investment banking firm that offers the lowest interest rate. That firm then sells the bonds to individuals and institutions such as insurance companies. Individuals can buy Town of Cary bonds from registered broker dealers.

CUSIP Numbers

A bond's CUSIP is an alphanumeric identification code, usually nine characters, assigned to each maturity of a bond issue and is printed on the face of each individual bond. All municipal bonds are assigned a CUSIP number prior to pricing.

CUSIP numbers for bonds outstanding as of June 30, 2022.

Types of Debt

General Obligation Bonds (GO)

Description: Town's taxing power pledged; voter approval required
Town of Cary uses: Water and sewer projects, streets, parks and recreation projects

Revenue Bonds (Rev)

Description: Specific revenue pledged; taxing power not pledged so no vote required
Town of Cary uses: Reclaimed water system, sewer system improvements, water system improvements, water tanks

Certificates of Participation (COPS) or Limited Obligation Bonds (LOBS)

Description: Specific property pledged; voter approval not required
Town of Cary uses: Town Hall expansion, N.C. 55 widening, street improvements

Installment Purchase Contracts (IP)

Description: Property that is financed used as collateral
Town of Cary uses: Projects costing less than $10 million

State Revolving Loans (SRL)

Description: Approved by N.C. Department of Environment and Natural Resources
Town of Cary uses: Sewer and water projects

Debt Outstanding

General Fund

Type of Debt	Issue Name	Balance as of 6/30/22
GO	2006 Public Improvement, Variable Rate	$ 20,855,000
GO	2014 Public Improvement	4,545,000
GO	2017A Public Improvement	23,435,000
GO	2017B Refunding	10,642,604
GO	2019A Public Improvement	14,360,000
GO	2020A Taxable Refunding	14,725,000
GO	2021 Public Improvement	125,000,000
LOBs	2010 LOBs Refunding	780,000
LOBs	2012 LOBS Refunding	1,565,000
IP	2018 Fire Financing	6,780,000
IP	2020 Fire Financing	788,040
	Total General Fund Debt Outstanding	$223,475,644

Utility Fund

Type of Debt	Issue Name	Balance as of 6/30/22
GO	2014 Public Improvement	4,355,000
GO	2017B Refunding	9,502,397
GO	2020A Taxable Refunding	30,935,000
REV	2013 Revenue Bonds	1,440,000
REV	2015 Revenue Bonds	32,180,000
REV	2017A Revenue Bonds	14,745,000
REV	2017B Refunding	89,615,000
REV	2020B Refunding	21,300,000
REV	2020C Taxable Refunding	37,385,000
	Total Utility Fund Debt Outstanding	$241,457,397

Links

Annual Comprehensive Financial Report

Annual Budget

Contact

Mary Beth Huber
Deputy Treasurer
Town of Cary Finance Department
P.O. Box 8005
Cary, NC 27512-8005
(919) 462-3957
Marybeth.Huber@carync.gov