North Carolina State Treasurer Brad Briner said his appointments to the state’s Investment Advisory Committee would improve the pension system’s growth.
The North Carolina Local Government Commission approved several bond deals at its meeting Tuesday.
Approved were $252 million, $90 million and $45 million of bonds for Mecklenburg County, a $200 million bond for the town of Durham, and a $130 million bond anticipation note for Piedmont Triad Regional Water Authority.
Mecklenburg County plans to make use of proceeds of the $252 million limited obligation bonds, with a 20-year term, to construct or renovate several municipal facilities.
The county’s $90 million general obligation bond proceeds will likely be used to refund its Series 2013B and 2015A bonds. No tax increase will likely be crucial. The bonds could have a 10-year term.
The proceeds of the $45 million GOs with a 20-year term will likely be used to enhance, acquire and upgrade solid waste facilities. The county plans to sell the bond competitively on or around January 22.
There will likely be no tax increase related to these bonds.
For Mecklenburg’s bonds, Fort Tryon Advisors is the municipal advisor and Parker Poe Adams & Bernstein is the bond counsel.
Durham’s $200 million GOs will mature in not more than 20 years and will likely be sold by competitive bid.
The town plans to make use of $115 million for streets and sidewalks. The remaining $85 million will likely be used for parks and recreation facilities.
The bonds would add 3.46 cents per $100 of assessed property value, with the speed declining over 20 years.
The commission approved the Piedmont Triad Regional Water Authority’s request to sell $130 million in bond anticipation notes, maturing April 1, 2027, for water treatment plant expansion to Truist Business Equity in a non-public placement. First Tryon is the municipal advisor and Robinson, Bradshaw & Hinson is the bond counsel.
Supporting the BANs and planned bond will likely be a 6.5% increase in water rates from 2026 to 2028 and a 4% increase thereafter.
Individually, State Treasurer Brad Briner announced he was appointing 4 members to the state’s Investment Advisory Committee. When he ran for office Briner criticized State Treasurer Dale Folwell for excessively conservative investment of the pension monies.
The brand new members are Robert Durden, chief executive officer and chief investment officer on the University of Virginia Investment Management Company; Michael Kennedy, former senior client partner with Korn Ferry; Jamey Spencer, managing director and shareholder at Pathstone; and Dan Ward, chief investment officer at Greenhawk Family Office.
“North Carolina’s pensions realized almost 1.4% lower annual performance than the typical pension in the USA over the past 10 years,” Briner said. “North Carolina deserves higher and this group of pros will help make sure that we’re maximizing returns at an appropriate level of risk.”