Can Greensboro’s City Council increase outstanding indebtedness with a non-voter approved $11,360,000 “Two-Thirds Bond” to close the White Street Landfill right after authorizing a $21,000,000 revenue bond on August 18, 2009?

On August 18th, City Council adopted a revenue bond project ordinance

 in the amount of $21 million

 to finance the cost of a new incinerator at the Osborne Plant.

 

A contact for the construction was also awarded on August 18th.

 

Rick Lusk

Finance Director

City of Greensboro

 

NORTH CAROLINA CONSTITUTION

 

ARTICLE V, FINANCE

 

Sec. 4. Limitations upon the increase of local government debt.

 

2) Authorized purposes; two-thirds limitation.  The General Assembly shall have no power to authorize any county, city or town, special district, or other unit of local government to contract debts secured by a pledge of its faith and credit unless approved by a majority of the qualified voters of the unit who vote thereon, except for the following purposes:

 

(a) to fund or refund a valid existing debt;

 

(b) to supply an unforseen deficiency in the revenue;

 

(c) to borrow in anticipation of the collection of taxes due and payable within the current fiscal year to an amount not exceeding 50 percent of such taxes;

 

(d) to suppress riots or insurrections;

 

(e) to meet emergencies immediately threatening the public health or safety, as conclusively determined in writing by the Governor;

 

(f) for purposes authorized by general laws uniformly applicable throughout the State, to the extent of two-thirds of the amount by which the unit's outstanding indebtedness shall have been reduced during the next preceding fiscal year.