ASHEVILLE, N.C. (828newsNOW) — Buncombe County voters will decide in November whether to authorize another $70 million in general-obligation bonds for affordable housing and open space, four years after approving bonds for the same priorities.
The proposal would authorize $40 million for affordable housing and $30 million for open space.
County officials say the bonds would help the county keep moving toward long-term goals for housing, land conservation and recreation while leveraging additional state, federal and private funding.
Commissioner Terri Wells said the priorities reflect goals identified through the county’s comprehensive and strategic planning processes.
“We must invest in our community and our own recovery with a vision for the future we want for our children and grandchildren,” Wells said.
The proposed bonds come as the county continues to use funding from the $70 million in bonds voters approved in 2022.
What happened with the 2022 bonds?
According to Wells, the 2022 bonds have supported more than 2,598 acres of conservation, more than 584 acres opened for public recreation, more than 16 miles of new trails and 8 miles of trail improvements.
The housing bond has supported more than 960 housing units, Wells said.
The county also says the 2022 bonds have helped leverage more than $322 million in outside funding.
Wells said the housing bond has been fully allocated.
The open-space bond is not quite at that point. Conservation projects are currently being evaluated, she said, and if those projects are approved, about $2.7 million would remain available for allocation from the 2022 open-space bond this year.
In other words, the housing bond is fully allocated, while some money from the open-space bond remains available.
Why another $70 million?
Wells said allocating the 2022 bond money doesn’t mean the county has finished addressing those needs.
The county’s strategic plan calls for conserving at least 700 acres each year, including farmland, scenic mountain land and property that can provide public recreation.
The county also has a goal of creating 1,850 affordable rental homes and 400 affordable ownership homes and supporting repairs to existing homes for people earning 80% or less of the area median income.
Wells said the county’s $2.3 million annual general-fund allocation for affordable housing is not enough to support some larger affordable-housing projects.
The bond funding allows the county to make larger investments up front, she said, while leveraging outside money.
With the 2022 housing bonds, the county has contributed an average of about 12.5% of project costs, Wells said.
Wells said the proposed open-space money would similarly be used to leverage other funding and help the county meet its conservation and recreation goals.
The county has not yet identified specific properties, housing developments or other projects that would receive the proposed 2026 bond money.
For housing, projects would go through a selection process in which county staff reviews applications, the Affordable Housing Committee makes recommendations and the Board of Commissioners approves the final projects.
For open space, community advisory boards review potential projects and make recommendations to commissioners.
The Helene connection
The county’s Helene Recovery Plan also includes priorities related to open space and conservation.
Wells pointed to the plan’s call for a land-use and management plan for properties acquired by the county through hazard mitigation efforts.
The plan calls for those properties to be considered for open space, natural-resource conservation, floodplain management and allowable recreational and agricultural uses.
Wells said the proposed bonds could help the county move forward with those priorities.
What will it cost?
The county estimates that issuing the full $70 million in bonds in a single year would add about $5.5 million in annual debt service, including principal and interest.
The county estimates the combined annual property-tax impact of the two bonds at about $43 for a home valued at $446,500.
That’s about $18 a year for the open-space bond and $25 for the housing bond.
The $43 estimate is based on the county’s current calculation and could vary depending on when and how the bonds are issued.
Voter approval would authorize the county to issue up to $70 million, but it would not require the county to borrow the entire amount immediately.
State law allows up to 10 years after voter authorization to issue the bonds. The timing would depend on cash-flow needs, project schedules and bond-market conditions, with approval from the Local Government Commission.
The county says issuing the full $70 million in one year would represent about 1.63% of its legal debt limit and would not prevent it from borrowing for other needs.
The county’s existing debt
Buncombe County expects to make $64.58 million in total debt-service payments during fiscal year 2027 across all funds and purposes for which it issues debt.
Of that amount, $28.69 million is funded through property taxes. That figure includes debt service on the previously issued 2022 housing and open-space bonds.
About $4.5 million of the property-tax-supported debt service is for debt issued under the 2022 housing and open-space bonds, according to the county.
The remaining debt service is paid through dedicated funding sources separate from property taxes, such as sales taxes dedicated to public school capital projects.
A question for voters
The county says the 2022 bonds have produced significant results and that more money is needed to continue its housing, conservation and recreation efforts.
But the timing raises a question voters will have to weigh: Why another $70 million only four years after the last bond referendum?
Wells said the proposed bonds would build on the progress made with the 2022 bonds and help the county continue toward its long-term goals.
“We have laid a strong foundation to build upon as we continue working on our community’s priorities,” Wells said.
Voters will decide in November.